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Starbucks’ corporate headquarters in Seattle recently reported its Q2 earnings on April 27, 2021.

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Starbucks has announced plans to eliminate 1,100 corporate roles while also opting not to fill several hundred additional vacancies, according to CEO Brian Niccol’s statement made Monday.

Importantly, these layoffs will not impact employees working in the company’s retail locations.

In a communication to corporate staff, Niccol explained that Starbucks is aiming to “streamline our organization, cut out redundancies, and form smaller, more agile teams.”

“Our goal is to enhance operational efficiency, boost accountability, simplify processes, and achieve better integration,” Niccol noted. “Ultimately, we want to concentrate on our key priorities to create a larger impact.”

This workforce reduction comes as Starbucks seeks to entice coffee enthusiasts back to its retail locations after experiencing declining same-store sales for four consecutive quarters. As customers increasingly prefer less expensive alternatives in Starbucks’ primary markets, the U.S. and China, Niccol has been working to revitalize operations since taking over as CEO last year, including efforts to expedite service.

As of last year, Starbucks employed around 16,000 individuals outside of its café locations. The job cuts will primarily affect those in corporate support roles, while positions in roasting, manufacturing, warehousing, and distribution will remain intact.

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