Executive says support teams need to be reorganized to emphasize in-store experience
Starbucks Corp. CEO Brian Niccol, in a message Friday to all partners, said the company is looking at its support organization and considering streamlining it, including possible layoffs, with a March deadline.
“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 message, “Back to Starbucks: Transforming our support organization,” filed with the Securities and Exchange Commission.
Since September, he said, Starbucks has worked to increase its “welcoming coffeehouse” atmosphere.
“Since then, we have been enhancing the in-store experience with the return of the condiment bar, writing on cups, more ceramic mugs and a revised code of conduct,” Niccol said. “We've shifted our marketing from discounts to highlighting our brand story and coffee leadership.”
The brand has also removed the non-dairy milk upcharge and set a goal of a four-minute wait time in cafés, he said.
“Our initial work has – rightly – focused on our U.S. and Canada stores and the store experience,” he said. “However, as we look to transform our business globally, we also need to examine the role, structure and size of our support teams around the world.”
He said he has seen “opportunities to operate more efficiently” by increasing accountability, clarifying priorities, and reducing duplication of effort and to focuse on the in-store experience.
“We have recently begun the work to define the support organization for the future,” he said in the message. “We are approaching this work thoughtfully, but it will involve difficult decisions and choices. I expect that, unfortunately, we will have job eliminations and smaller support teams moving forward. This work will not affect our in-store teams or the investments we are making in store hours.”
Niccol said Starbucks would communicate the changes by early March.
“I do not take these decisions lightly,” he said, “and I appreciate that this will create uncertainty and concern between now and then. I wanted to be transparent about our progress and our plans and ensure that you hear about this work directly from me.
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