Paramount plans November layoffs in $2 billion cost-cutting move - NYP
Investing.com -- Starbucks (NASDAQ:SBUX) will provide a 2% salary increase to all salaried employees in North America this year as part of CEO Brian Niccol’s turnaround strategy focused on controlling costs.
The modest pay hike will apply to corporate staff, manufacturing and distribution workers, and store managers, according to Bloomberg News.
Under Niccol’s leadership, Starbucks has implemented several cost-cutting measures including job reductions, stricter dress codes, and executive incentives tied to cost control. These efforts come as the company invests in improving service wait times and enhancing the coffeehouse atmosphere in its locations.
The company indicated it needed to "carefully manage all our other costs" while investing in Niccol’s turnaround initiatives. Previously, raises for salaried employees were determined by managers.
Meanwhile, Starbucks continues negotiations with unionized baristas. In April, union delegates rejected the coffee chain’s proposal that included guaranteed annual raises of at least 2%. The Workers United union stated the offer lacked changes to economic benefits such as healthcare and did not provide an immediate pay increase.
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