Starbucks slashes 1,100 corporate jobs, tells execs to be in office 3 days

• Starbucks announced it is slashing 1,100 corporate jobs. The company said it would notify affected employees by midday Tuesday, Feb. 25.
• Baristas and other in-store workers would not see cuts.
• CEO Brian Niccol said North American executives need to work from the Seattle or Toronto offices at least three days a week.

Full Story

The federal government isn’t the only major employer trimming headcount. On Monday, Feb. 24, Starbucks CEO Brian Niccol announced the company would cut 1,100 corporate employees this week. 

In a letter to employees, Niccol said the company would notify affected workers by midday Tuesday, Feb. 25. The job cuts do not affect baristas and in-store teams.

Download the SAN app today to stay up-to-date with Unbiased. Straight Facts™.

Point phone camera here

On top of cutting 1,100 corporate jobs, Starbucks will eliminate several hundred additional open and unfilled positions. 

“We are simplifying our structure, removing layers and duplication and creating smaller, more nimble teams,” Niccol wrote. “Our intent is to operate more efficiently, increase accountability, reduce complexity and drive better integration.” 

Starbucks first hinted at these changes in a January letter to employees. In it, Niccol said the company would communicate changes by early March. 

“Our size and structure can slow us down, with too many layers, managers of small teams and roles focused primarily on coordinating work,” Niccol said in January. 

Executives need to be back in the office

In Monday’s announcement, Niccol also reiterated strict enforcement for in-person work for Starbucks executives. 

“Moving forward, vp+ leaders in North America will need to be present with their teams in our Seattle (U.S.)  and Toronto (Canada) offices at least three days a week,” Niccol said.

That includes Niccol, who made headlines for his own work arrangement when hired. Niccol did not relocate to Starbucks headquarters in Seattle when hired as the chief executive. 

Instead, his contract allows him to commute via private jet from his Newport Beach, California, home. However, when he is not traveling, Niccol must work in Seattle three days a week. 

Starbucks has had a hybrid work policy of three days a week in the office since 2023.

From Taco Bell to Chipotle to Starbucks

Starbucks hired Niccol from Chipotle to improve its operations. He started in September, when the company was struggling with store sales in and out of the U.S. 

Niccol, who worked at Taco Bell before joining Chipotle, is credited with helping to revive Chipotle’s reputation after multiple incidents of foodborne illnesses. During his tenure as CEO, Chipotle outperformed the market.

Shares of Starbucks surged on the announcement that the company had hired Niccol for the top job. 

Since starting at Starbucks, Niccol announced his “Back to Starbucks” initiative. He said the brand needed to reestablish itself as the community coffeehouse and placed high importance on fulfilling orders “on time, every time.” 

Get up to speed on the stories leading the day every weekday morning. Sign up for the newsletter today!

Learn more about our emails. Unsubscribe anytime.

Enter your email for newsletter updates Subscribe

By entering your email, you agree to the Terms & Conditions and acknowledge the Privacy Policy.

The biggest consumer-facing challenge at Starbucks is managing the operation of multiple order channels, said Robert Byrne, senior director of consumer research at the foodservice industry consulting firm Technomic. Between in-store, online and drive-thru, Starbucks has struggled with synchronization.

“Part of the reason that [Niccol] is the person that they hand-picked as the next person to lead the brand is because he was very successful in creating two separate make lines in Chipotle stores, essentially one that satisfies one order flow and one that satisfies that in-store order flow, which makes for speed on both counts,” Byrne told Straight Arrow News last year.