Starbucks on the path to increasing efficiency: Job cuts and structural change planned

Starbucks plans measures to increase efficiency: CEO Brian Niccol announced that there will be job cuts in the supporting teams. This measure is part of the company's ongoing efforts to optimize its business practices. The details of the layoffs, to be announced by early March, do not affect the teams in the stores or the investments in store opening hours. Niccol, the former Chipotle executive who has been with Starbucks for four months, has developed a series of measures to strengthen the coffeehouse chain's business. This is due to increased competition and declining demand in the U.S. and China markets. "Our size and structure can slow us down, with too many layers and managers of small teams mainly focused on coordinating work," Niccol explained. He intends to review the role, structure, and size of the support teams worldwide. In October, the company suspended its forecasts for the fiscal year 2025 and presented plans to remodel U.S. locations. This includes introducing more comfortable seating, ceramic cups, and a coffee condiment bar to reduce customer wait times to under four minutes. On Thursday, Starbucks announced that Lead Independent Director of the Board, Mellody Hobson, plans to retire after nearly two decades.