Starbucks CEO Brian Niccol said on Friday the coffee giant will cut jobs to optimise its support teams as part of the company's ongoing turnaround efforts.
The details of the job cuts, to be announced by early March, will not affect the company's in-store teams or the investments it makes in store hours, he added.
Niccol, the former Chipotle Mexican Grill head, who is four months into his new role at Starbucks has set forth a raft of measures to improve the coffee chain's business, which took a hit from increased competition and weakening demand in the US and China.
"Our size and structure can slow us down, with too many layers, managers of small teams and roles focused primarily on coordinating work," Niccol said in a statement, adding that he will examine the role, structure and size of support teams globally.
The company suspended forecast for its fiscal year 2025 in October and laid out plans to overhaul its US locations, adding more comfortable seating, ceramic mugs and a coffee-condiment bar, with customer wait times of less than four minutes.
On Thursday, Starbucks' lead independent director on its board, Mellody Hobson, said she would retire after nearly two decades with the company.
Hobson previously served as the chairwoman of Starbucks from March 2021 to September 2024, making her the only African American woman to chair a Fortune 500 company at the time of her appointment.
"In two decades, I have never sold a single Starbucks share and plan to remain a steadfast investor," Hobson said in a letter dated January 14.
She informed Starbucks earlier this week of her decision to not stand for re-election at the upcoming annual shareholders' meeting, according to a filing by the company.
The exit comes at a time when Corporate America is scaling back diversity, equity, and inclusion (DEI) policies meant to boost racial and ethnic representation at workplaces.
In March, Starbucks' shareholders voted for an executive compensation plan that dropped a bonus related to DEI goals.
The coffee store chain operator is also navigating an overhaul of its US locations under Niccol, who has been tasked with steering the company back to growth after it took a hit from falling demand for its pricey beverages in the key US and China markets.
Since 2019, Hobson has been the co-CEO and president of investment management firm Ariel Investments and assumed her current role along with Niccol last year.
Hobson would continue to serve through the remainder of her current term, the company said.
Starbucks is scheduled to report first-quarter results on January 28.
