Starbucks reportedly cutting 5% of its corporate workforce

Business


Starbucks is planning to cut approximately 5 percent of its global corporate workforce, according to a memo sent by CEO Kevin Johnson on Tuesday.

In the memo obtained by CNBC, Johnson said the lay offs would impact 350 employees in marketing, creative, product, technology and store development.

Johnson said affected divisions will undergo “significant changes” as Starbucks narrows its priorities and aims to become a more nimble company. He said while these decisions were “incredibly difficult,” they were made after “very careful consideration.” Johnson said impacted roles were related to work that had been “eliminated” or “deprioritized.”

The Wall Street Journal first reported the layoffs.

The news comes after Starbucks said in September that it would cut corporate staff as it shuffles its organizational structure.

Starbucks has been plagued with lagging U.S. sales for several quarters. The coffee giant has scaled back on store growth and closed underperforming company-owned locations.

While the company still sees positive same-store sales, investors have been looking for a faster pace of sales growth.

In its fiscal fourth quarter, Starbucks said sales in the U.S. and Americas that had been open for at least a year grew 4 percent. That topped Wall Street expectations for growth of about 2.7 percent.

Johnson said it was the company’s strongest same-store-sales growth in the U.S. in five quarters.

This is breaking news. Please check back for updates.

— CNBC’s Kate Rogers contributed reporting.



Source link

Products You May Like

Articles You May Like

Robinhood to re-brand savings account plan after widespread criticism
JNJ oversold on asbestos fears; legal costs manageable, analyst says
These stocks represent good value, but they aren’t buys
Where to get the best returns for your cash right now
Social Security can buy seniors luxury living in five overseas spots 

Leave a Reply

Your email address will not be published. Required fields are marked *