Starbucks plans to cut more than 1,100 corporate jobs

Starbucks will lay off 1,100 corporate employees and eliminate hundreds of open and unfilled positions, chief executive Brian Niccol said in a Monday email to staff.

The move is part of Niccol’s plan to “position the company for future success” by streamlining operations and create a more nimble workforce, he said: “Our intent is to operate more efficiently, increase accountability, reduce complexity and drive better integration.”

Employees will be notified by midday Tuesday whether their job was affected by the cuts. The Seattle-based chain has about 16,000 corporate employees globally.

Starbucks has posted three consecutive quarters of declines for same-store sales. Meanwhile, the price of coffee beans has been hovering at record highs as global supply dwindles, due in-part to climate change and increased demand.

Soon after Niccol took over as CEO in September – after six years at the helm of Chipotle Mexican Grill – he announced a new initiative meant to “revitalize” the company by streamlining in-store and corporate operations.

In January, the company said it already was seeing “positive results” in its turnaround plan. It beat analysts’ profit and revenue expectations in the fiscal first quarter. Consolidated revenue, which was $9.4 billion, was flat over last year.

Niccol signaled plans to slim down operations in January as part of his “Back to Starbucks” initiative, which also included strategies to shorten wait times in stores and create a more nostalgic experience with the return of the condiment bar, baristas writing on cups and broader use of ceramic mugs.

Starbucks has also done away with up-charging for nondairy milk and scaled back its discounts, which were down 40% over last year in the company’s first quarter. The company is also paring its beverage and food menu by about 30 %, Niccol said in the January earnings call, and has expanded its free refills on tea and coffee to non-Starbucks-rewards customers.

Starbucks will continue to hire for “priority positions” that fit into the new streamlined corporate structure, Niccol said. The company will keep its three-day hybrid workweek, but it said future roles will be based in Seattle or Toronto.