Starbucks CEO Brian Niccol says the company’s app needs to be more transparent when it comes to pricing.
global coffeehouse chain starbucks Corporate jobs will be cut as CEO Brian Niccol continues to implement changes to reverse declining sales and improve profitability.
Niccol made the announcement via a notice to employees that was also posted on the Starbucks website.
He highlighted how the company aims to deliver on its “Back to Starbucks” strategy, a series of changes announced last year aimed at enhancing customers’ in-store experience, but also said it will be driven by improved efficiency. Efforts are required, which will ultimately result in layoffs.
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“We have recently begun work to define the aid organization for the future. We are doing this work thoughtfully, but it will involve difficult decisions and choices. I hope that, unfortunately, we will not have Jobs will be eliminated and smaller support teams will move in,” Nicole wrote,
People walk past a Starbucks coffee shop in Manhattan, New York on January 15. (Mustafa Basim/Anadolu via Getty Images/Getty Images)
“This action will not impact our in-store teams or the investments we are making in our store hours. We will communicate changes by early March.”
Nicol said he doesn’t take such decisions lightly and wants to be transparent about his plans to ensure employees hear about the plans directly from him. It is not clear how many people will be allowed to leave.
Nicole, who took over as CEO In September, the company stressed the need to return to its roots as a coffee house.
The “Back to Starbucks” strategy aims to bring back some of the things that made the company the most recognized coffee brand in the world.
This includes bringing back masala bars in stores and enhancing the aesthetic of coffee houses with personal touches, such as serving coffee in ceramic mugs.
Starbucks CEO Brian Niccol. (Robin Merchant/Getty Images/Getty Images)
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Starbucks is also resuming the use of Sharpies to write customers’ names on cups and it will be discontinued charge extra To customize beverages with non-dairy milk.
The company has also set a target of four minutes wait time in cafes and provided additional coverage hours in more than 3,000 stores.
Earlier this month, the company said it would only welcome paying customers to hang out and use Toilets at its storesThe move was made to give priority to paying customers who want to sit down and enjoy its cafes.
The company will double it from this spring Paid parental leave benefits For workers. It previously offered six weeks of paid leave for parental leave.
In its latest goals of creating a positive work culture, the company has also committed to filling 90% of retail leadership roles internally, to ensure that employees stay with the company longer and grow. It is continuing to cover 100% of college tuition for thousands of employees as part of its Starbucks College Achievement Plan and offering. Company stock to eligible partners.
“We have more work to do, but I’m pleased with the progress we’ve made and appreciative of how everyone has worked around the plan,” Nicholl wrote to workers.
A Starbucks coffee cup is seen at a cafe in Manama, Bahrain on March 5, 2024. (Jakub Porzycki/Nurfoto via Getty Images/Getty Images)
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Before Niccol took over, the company suffered a string of disappointing financial quarters due to increasing pressure from unionization campaigns across the country and declining traffic. Nicole, who replaced former CEO Laxman Narasimhan in August, Striving to increase profitability and create a better environment for workers.
Nicole has also faced a staff strike Hundreds of stores across the country,
Fox Business’ Daniela Genovese contributed to this report.