Starbucks sheds more than 100 jobs as it wraps up restructuring
The cuts include roles within the team that oversees the design and construction of its stores
Starbucks has announced the elimination of over 100 jobs as part of a restructuring effort aimed at boosting growth. The company has laid off workers who declined to relocate to a new Nashville office, as well as employees within the team responsible for designing and constructing its stores. According to a filing with Washington state regulators, about 120 workers who chose not to move to Nashville will also be separated.
Starbucks anticipates that the Nashville office will eventually employ around 2,000 people. The company's sales growth at existing stores has improved for four consecutive quarters, following a period of decline caused by customers' dissatisfaction with slow service and subpar products. Starbucks has implemented various strategies to attract customers, such as increasing staff, providing additional training, and adopting new technology to manage order priority.
The company is also renovating its locations and replacing low-selling items with more appealing alternatives. CEO Brian Niccol has set a goal to cut US$2 billion in costs over the next two years, which includes streamlining the corporate structure. So far, Starbucks has eliminated more than 2,300 corporate positions since last year.
The company is also closing underperforming stores and selling a stake in its China business to a local partner. Starbucks' shares have surged nearly 25% this year, outperforming the S&P 500 Index's more than 12% gain.
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