Starbucks to Lay Off 1,100 Employees Amid Declining Sales and Global Boycotts
US coffee giant Starbucks has announced plans to lay off 1,100 employees as part of its efforts to restructure and streamline operations. CEO Brian Niccol revealed the decision in a company statement on Monday, stating that the move aims to enhance efficiency and accountability within the organization.
A Shift Towards a Leaner Organization
According to Niccol, Starbucks is simplifying its structure, reducing redundancies, and creating smaller, more agile teams. He emphasized that the company seeks to increase accountability, reduce complexity, and improve integration, ultimately driving greater focus and impact on business priorities.
Additionally, Niccol promised improvements in service speed, enhancements in the mobile ordering experience, and a better ambiance in Starbucks cafés to retain and attract more customers.
Corporate Workers Affected, Café Staff Spared
As of September, Starbucks employed approximately 16,000 corporate workers. However, the company has assured that manufacturing, distribution, warehousing, coffee roasting, and café employees will not be affected by the layoffs. The restructuring mainly targets corporate positions, leaving front-line workers and café operations untouched.
This decision comes at a time when Starbucks is facing the impact of a global boycott against US-based food brands, with protests linked to Washington’s support for Israel amid accusations of genocide in Gaza.
Financial Challenges and a Declining Market
Starbucks is also struggling with declining quarterly sales, further complicating its financial outlook. The company has not specified whether the layoffs are directly related to these challenges, but analysts suggest that the restructuring is an attempt to mitigate financial losses and adapt to shifting consumer sentiment.
Meanwhile, a ceasefire has been in place in Gaza since last month, following Israeli military actions that resulted in the deaths of at least 48,300 people, predominantly women and children, and left much of Palestine in ruins.
In November, the International Criminal Court (ICC) issued arrest warrants for Israeli Prime Minister Benjamin Netanyahu and former Defense Minister Yoav Gallant over allegations of war crimes and crimes against humanity in Gaza. Israel is also facing genocide charges at the International Court of Justice (ICJ) for its actions in the region.
Source: Berita Harian
