Jan 15 (Reuters) - Starbucks ( SBUX ) said on Monday it
would eliminate 1,100 corporate roles as CEO Brian Niccol pushes
ahead with his efforts to streamline the coffee chain and turn
around its business.
The layoff would include current support partner roles and
several hundred additional open and unfilled positions, Niccol
said in a letter to employees.
"We are simplifying our structure, removing layers and
duplication and creating smaller, more nimble teams," Niccol
said. "Our intent is to operate more efficiently, increase
accountability, reduce complexity and drive better integration."
The coffee chain has been battling weak demand for its
higher-priced beverages in the U.S. and China. Investors have
been betting on Niccol, who took the helm last year, to simplify
the operating structure and revive the coffee-house culture at
its U.S. stores.
Niccol, who is credited with reviving burrito chain Chipotle
Mexican Grill, had in January said Starbucks ( SBUX ) would cut jobs and
said more details would be announced by early March.
In his new role at Starbucks ( SBUX ), Niccol has laid out a plan
called "Back to Starbucks ( SBUX )" in attempt to revive the business.
"We will continue to hire for priority positions that fit
with our new support structure and add capability and capacity
we need," Niccol said in the letter.
The layoffs would not affect in-store teams or the
investments Starbucks ( SBUX ) is making in store hours, he said.