Corporate Restructuring
CEO announced plans for an unspecified number of corporate layoffs aimed at restructuring the company's corporate staff to reduce complexity and improve decision-making.
The restructuring focuses on ensuring clear ownership of work and reducing managerial layers, without affecting store-level employees, such as baristas. Decisions regarding layoffs will be communicated by early March.
Financial Challenges and Leadership Changes
The announcement follows a period of disappointing sales for Starbucks, attributed to reduced spending by U.S. customers and competition from lower-priced rivals in .
Niccol, who has a background in marketing with previous leadership roles at and , was brought in to help turn around the company's fortunes amid these challenges.