Starbucks will lay off 1,100 corporate employees as Brian Niccol, the new CEO of the Seattle-based coffee chain, plans to streamline operations.
The announcement, which the company made Monday in a press release, comes after senior leaders in January began “evaluating the role, structure and size of” its global corporate divisions. Those whose positions are being eliminated will be notified by Tuesday, Niccol said in a statement.
The move, which also involves the decision to not fill “several hundred” open positions, does not apply to baristas and others who work in Starbucks stores themselves, the release stated.
“I recognize the news is difficult. It is not a decision the leadership team took lightly,” Niccol said in a statement. “We understand the real effect this has on partners’ lives and their families. We believe it’s a necessary change to position Starbucks for future success.”
Those laid off will be offered comprehensive severance packages that could include pay, healthcare and career transition services, Niccol added.