Brian Niccol, the CEO of Starbucks, recently announced that the company will proceed with staff reductions in 2025 as part of its budget adjustments and restructuring efforts. In a statement, Niccol explained, “We have recently started working to define the organization that will support us in the future. We are approaching this work with great thoughtfulness, but it will involve difficult decisions and choices. Unfortunately, I anticipate job eliminations and smaller support teams in the future.”
Starbucks, known as one of the largest coffeehouse chains globally, currently operates around 38,000 locations across 83 countries. The company is committed to executing its “Back to Starbucks” strategy, which aims to attract and retain customers by enhancing their experience. This initiative comes in response to changes in consumer behavior that have significantly impacted the company’s sales in recent years.
Despite the upcoming layoffs, Niccol emphasized that the adjustments will not affect store-level teams or ongoing investments in operating hours. “These changes will not impact our store teams or the investments we are making in operating hours. We will communicate the changes in early March,” he stated.
Focus on growth and employee benefits
Niccol remains optimistic about the company’s progress despite the challenges. “We have a lot more work to do, but I’m pleased with the progress we’ve made and appreciate how everyone has rallied around the plan,” he said in his message to employees.
Starbucks also intends to uphold its commitment to fostering a positive workplace culture. One of its key initiatives is the Starbucks College Achievement Plan, which provides employees with opportunities to pursue higher education by covering tuition costs. The company views this program as a vital part of its efforts to benefit its workforce and promote growth.
As Starbucks navigates these organizational changes, the company remains focused on maintaining its global leadership in the coffee industry while delivering a superior customer experience and supporting its employees’ professional and personal development.
