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Starbucks will remove 1,100 office jobs while the new managing director Brian Niccol will try to relaunch the largest chain of cafes in the world.
The company said on Monday that business posts will have to work remotely this week because it informs employees who will be dismissed.
The job cuts have been the first for Starbucks workers since 2018, while 350 was eliminated. Starbucks does not cut any job inside his cafes.
Employees who are dismissed will receive a message on Tuesday, said the company.
Niccol was hired in September with the aim of shooting Starbucks, because pedestrian traffic and lower sales lower.
In a letter to the staff on Monday, Niccol said that Starbucks would reduce 1,100 jobs that were currently filled, as well as “several hundred” more open and not filled positions.
Most of the 361,000 Starbucks employees work inside the more than 21,000 cafes it operates worldwide. About 16,000 are employed in the support of companies, including at its head office in Seattle, as well as in store development, roasting, manufacturing, storage and distribution. Starbucks did not specify the number of jobs for supporting companies that exist within the company.
Starbucks underwent a prolonged slide in sales at comparable stores, a drop of 4% during the quarter which ended in December.
Niccol last month announced the abolition of imminent jobs, saying that the company had too many diapers. “Our intention is to function more efficiently, to increase responsibility, to reduce complexity and to stimulate better integration,” he told staff on Monday.
Actions increased 0.6% shortly after the Wall Street opening bell on Monday.
In his message, Niccol said that business leaders having the status of vice-president or superior who have worked at a distance will now have to spend at least three days a week at Starbucks offices in Seattle or Toronto, the Canadian base of the company. Employees with director securities and below with remote work status will be able to keep this status.
This week, however, Starbucks asked the company’s staff to work remotely because he informs the 1,100 employees who will be dismissed, citing reasons of confidentiality. Those whose jobs have been cut will receive an email on Tuesday from a member of the management team, said the company.
