Starbucks is set to reduce its global corporate workforce by 1,100 employees as new Chairman and CEO Brian Niccol implements a streamlining initiative.

In a letter addressed to staff on Monday, Niccol indicated that notifications regarding the layoffs would be communicated by mid-day on Tuesday. He also mentioned that the company would be cutting several hundred vacant positions.

“Our goal is to enhance operational efficiency, foster accountability, minimize complexity, and improve integration,” Niccol stated in his correspondence.

Starbucks currently employs 16,000 corporate support staff globally, although this figure includes certain positions, such as those in roasting and warehousing, which are not affected. Baristas working in the stores will not be part of the reductions.

Niccol had previously announced in January that announcements regarding corporate layoffs would occur by early March. He emphasized the need for every task to be overseen by decision-makers as Starbucks aims to simplify its organizational structure and eliminate internal silos that hinder effective communication.

“Our size and structure can impede our agility, with excessive layers of management, small-team supervisors, and roles that primarily focus on work coordination,” Niccol conveyed in his letter.

Starbucks brought Niccol on board last fall to revitalize lackluster sales figures. He has expressed his intention to enhance service speed—particularly during peak morning hours—and re-establish stores as local community hubs.

Additionally, Niccol is trimming the menu offerings and experimenting with new ordering systems to improve handling of mobile, drive-thru, and in-person orders.

For the fiscal year 2024, which concluded on September 29, Starbucks experienced a 2% decline in global same-store sales, primarily due to U.S. customers growing weary of rising prices and long wait times. In China, the company grappled with intensified competition from lower-cost alternatives.

Nonetheless, in the most recent quarter, the company exceeded most sales projections, with Niccol’s changes, such as the decision to eliminate the extra charge for non-dairy milk and streamline the menu, resulting in increased foot traffic and enhanced service quality.

On Monday, Starbucks shares saw a modest rise of less than 2%.