Starbucks is restructuring its global support operations, resulting in the elimination of 1,100 current support center jobs and several hundred unfilled positions. Impacted employees will be notified by midday on Feb. 25, according to an open letter from CEO Brian Niccol published on Starbucks.com on Feb. 24.
Starbucks emphasized that it will provide comprehensive severance packages and career transition services to affected employees.
The move comes as part of Starbucks’ “Back to Starbucks” plan, aimed at streamlining operations and improving focus on key priorities. The strategy includes investments in technology to enhance the partner and customer experience, and evolve its app and mobile ordering platform.
“We are simplifying our structure, removing layers and duplication and creating smaller, more nimble teams. Our intent is to operate more efficiently, increase accountability, reduce complexity and drive better integration. All with the goal of being more focused and able to drive greater impact on our priorities,” Niccol wrote.
In January, Niccol communicated that the company was evaluating the role, structure and size of its global supports team of 16,000 people worldwide. The restructuring does not affect Starbucks’ retail store employees or its investments in store operations.
However, it does include changes to some partners’ roles, including responsibilities and report structure. VP+ leaders in North American will need to be in the Seattle or Toronto offers at least three days a week. Remote employees in director and below roles will keep their remote status. Hiring for future roles will require partners to be in the Seattle or Toronto offices.
Starbucks is experimenting with its ordering algorithms to better handle its mix of mobile, drive-thru and in-store orders, the Associated Press reported.
