Starbucks said Monday that it would remove the role of 1,100 companies as CEO Brian Nicole drives turnaround efforts in coffee chains struggling with declining sales.
“We simplify the structure, remove layers and replicas, and create smaller, more agile teams,” Nicole said in a letter to employees.
“Our intention is to operate more efficiently, increase accountability, reduce complexity and promote better integration.”
Nicole was appointed CEO last year when its shares lost 40% of its value from 2021 due to weak US and China demand.
Believed to have turned the burrito chain Chipotle Mexican Grill, he has created a “Back to Starbucks” plan focusing on streamlining his business through recruitment and improving the customer experience in U.S. stores.
Since taking the helm six months ago, Starbucks shares have recovered more than 22%. They had risen slightly in early trading on Monday.
According to a 2024 report, Starbucks employs around 211,000 people in the United States and around 150,000 internationally.
“We will continue to hire for priority positions that fit the new support structure and add the necessary functions and capabilities,” Nicole said. He added that the move will not affect the investments that the in-store team or Starbucks earn during opening hours.
Apart from that, the company has removed some “not-so-popular drinks” from the menu, including some Frappuccino blended drinks and white hot chocolate, along with Nicole’s push to simplify the menu. He said there was.