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Investing.com -- Starbucks Corporation (NASDAQ:SBUX) is laying off 1100 corporate employees and will leave several hundred positions unfilled as part of CEO Brian Niccol’s plan to streamline operations.
The job cuts are aimed to remove corporate layers and duplication, helping the company become more focused, Niccol said in a message to employees.
The layoffs will not affect cafe workers or employees in roasting, manufacturing, warehousing, and distribution, the company said.
The coffee chain, which had 16,000 corporate employees as of last September, has been struggling with declining sales as customers seek cheaper options or avoid long lines. Niccol has pledged to improve store experience, speed up service, and enhance mobile ordering.
Shares of the company were up 0.5% at $112.3 in premarket trading. The corporate job cuts are Starbucks’ largest in size. It laid off about 350 corporate employees, which was about 5% of its global corporate workforce in 2018.