Starbucks corporate layoffs looming in March: CEO

World Cafe Starbucks chain will cut corporate jobs as its CEO Brian Nicol continues to make changes to boost backlog sales and improve profitability.

Nicole did so in a notice to employees, which was also posted on the Starbucks website.

He highlighted how the company aims to implement its “Back to Starbucks” strategy, a series of changes announced last year aimed at improving the customer experience in the store, but also said it must strive for better efficiency, which in will eventually lead to layoffs.

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“We have recently started work on defining the support organization for the future. We are approaching this work thoughtfully, but it will involve difficult decisions and choices.” Nicole wrote.

People walk past a Starbucks coffee shop in Manhattan, New York, United States on January 15, 2025. (Mostafa Basim/Anadolu via Getty Images/Getty Images)

“This work will not affect our store teams or the investments we make in store hours. We will announce the changes in early March.”

He said he does not take such decisions lightly and wanted to be transparent about his plans so that employees would hear about the plans directly from him.It is not known how many people will be let go.

Nicole, who? assumed the position of general director in September emphasized the need for the company to return to its roots as a coffee shop.

The “Back to Starbucks” strategy aims to bring back some of the things that have made the company the most recognized coffee brand in the world.

That includes bringing spice bars back into stores and enhancing the cafe’s aesthetic with personal touches, such as serving coffee in ceramic mugs.

Starbucks CEO Brian Nicol, pictured in 2015 (Photo by Robin Marchanti/Getty Images/Getty Images)

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Starbucks is also resuming the use of Sharpies to write customers’ names on cups and will discontinue additional charge to accommodate non-dairy beverages.

The company has also set a four-minute waiting time goal in coffee shops and provided additional cover hours in more than 3,000 stores.

Earlier this month, the company announced that it would only welcome paying customers to relax and use toilets in its stores. The move was made to prioritize paying customers who want to sit down and enjoy the cafes.

Starting this spring, the company will double its size paid parental leave benefits for workers. The company previously offered six weeks of paid time off for parental leave.

Among its recent goals to create a positive work culture, the company has also committed to filling 90% of retail leadership roles internally so that employees stay and grow with the company.It also continues to cover 100% of college tuition for thousands of employees as Starbucks part of the college’s achievement program and offering. company shares to eligible partners.

“We have a lot more work to do, but I’m pleased with the progress we’ve made and appreciate how everyone has come together on the project,” Nicholl wrote to employees.

A cup of Starbucks coffee is seen in this illustration photo taken on March 5, 2024 at the cafe in Manama, Bahrain. (Jakub Porzycki/NurPhoto via Getty Images/Getty Images)

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Prior to Nicol’s leadership, the company was facing increasing pressure from union organizing campaigns across the country and consecutive disappointing financial quarters as traffic declined.Nicol, who replaced the former CEO Laxman Narasimha in August, seeks to increase profitability and create a better environment for employees.

Nicole also faced striking workers hundreds of stores nationwide.

Fox Business’s Daniella Genovese contributed to this report.