AdvertisementAdvertisementBusinessFILE - A costumer exits a Starbucks store in Oakland, Calif., Jan. 16, 2025. (AP Photo/Godofredo A. Vásquez, File)25 Feb 2025 02:13AM Bookmark Bookmark WhatsApp Telegram Facebook Twitter Email LinkedInRead a summary of this article on FAST.Get bite-sized news via a newcards interface. Give it a try.Click here to return to FAST Tap here to return to FASTFAST Starbucks said on Monday (Feb 24) it would eliminate 1,100 corporate roles as CEO Brian Niccol pushes ahead with his turnaround efforts at the coffee chain, which has been struggling with falling sales."We are simplifying our structure, removing layers and duplication and creating smaller, more nimble teams," Niccol said in a letter to employees."Our intent is to operate more efficiently, increase accountability, reduce complexity and drive better integration."Niccol was named CEO last year at a time when the company's shares had lost 40 per cent of their value from the 2021 high due to weak demand in the US and China.Credited with turning around burrito chain Chipotle Mexican Grill, he put in place the "Back to Starbucks" plan that focused on streamlining business through job cuts and by improving customer experience at its US stores.Since taking the helm six months ago, Starbucks shares have rebounded more than 22 per cent. They were up nearly 2 per cent in afternoon trading.Commentary: Starbucks return-to-office is another corporate double standard"We will continue to hire for priority positions that fit with our new support structure and add capability and capacity we need," Niccol said, adding the move would not affect in-store teams or the investments Starbucks is making in-store hours.Starbucks employs about 211,000 people in the US and around 150,000 employees internationally, according to its 2024 report."Relative to the last major layoff in 2018, I believe the level is significant," said Jim Sanderson, analyst at NorthCoast Research.In 2018, Starbucks planned to lay off 350 global corporate employees as part of a restructuring plan under then-CEO Kevin Johnson.Sanderson, however, noted it would be necessary to understand which segments or divisions in the corporation will be impacted by the layoffs and how this fits within Starbucks' global long-term turnaround strategy.Separately, Starbucks said it was removing a few "less popular beverages" from the menu, including several frappuccino blended beverages and the white hot chocolate, in line with Niccol's push to simplify its menu.Daily Cuts - How Starbucks fortified their "Third Place" identitySource: Reuters/fsSign up for our newslettersGet our pick of top stories and thought-provoking articles in your inboxSubscribe hereGet the CNA appStay updated with notifications for breaking news and our best storiesDownload hereGet WhatsApp alertsJoin our channel for the top reads for the day on your preferred chat appJoin hereAlso worth readingContent is loading...Expand to read the full storyGet bite-sized news via a newcards interface. Give it a try.Click here to return to FAST Tap here to return to FASTFAST