Starbucks: Starbucks prepares to lay off 1100 employees, the company said – vacant positions will also be eliminated

Coffee chain company Starbucks has prepared to lay off 1,100 employees globally. Apart from this, the company will also eliminate hundreds of vacant positions. The company’s new chairman and CEO Brian Nicol has taken this step to fix operations. In a letter issued to the employees on Monday, Nicol said that the employees who will face layoffs will be informed by Tuesday afternoon. He also said that hundreds of vacant positions in the company will also be eliminated.

The company’s CEO Nicol said that our aim is to work more efficiently, increase accountability, reduce complexity and better integration. Starbucks has 16 thousand employees worldwide. Some of the company’s employees will not be affected by the layoffs. This includes roasting, warehouse, barista employees working in the company’s stores.

In January, Nicol said that layoffs would be announced in early March. All work should be overseen by someone who can make decisions. Our size and structure can slow us down. Starbucks appointed Nicole as CEO last year to improve sluggish sales. He has said that he wants to improve service time. He wants to re-establish the stores as community gathering places.

Sales decreased by two percent in a year

In the last one year, Starbucks’ global sales have declined by 2 percent in the 2024 fiscal year. The main reason for this is believed to be the increase in prices and increasing waiting time in the US. In China, it is facing tough competition from chains providing cheaper coffee options. Starbucks shares remained stable in premarket trading on Monday.