Starbucks to Make Corporate Staff Cuts

Starbucks will be slashing some of its corporate staff according to an internal memo that was sent by the coffee giant’s CEO Kevin Johnson to employees.

The changes to Starbuck’s leadership are expected to start this week and will continue into November.

CNBC obtained the memo, entitled “Building our future together,” in which Johnson wrote, “We must increase the velocity of innovation that is relevant to our customers, inspires our partners, and is meaningful to our business. To accomplish this, we are going to make some significant changes to how we work as leaders in all areas of the company.”

It reads that “starting next week and into mid-November there will be leadership shifts and non-retail partner impacts as we evolve the direction of teams across the organization in size, scope and goals.”

According to a source who spoke to CNBC, some roles will be consolidated, others will be shifted, and there will be some non-retail layoffs.

“Change can be difficult, but our culture and our legacy are built on continuing to challenge the status quo,” Johnson remarked.

The company is also going to decrease its new licensed stores in 2019 by about 100 stores.

Disclaimer: We have no position in Starbucks Corporation (NASDAQ: SBUX) and have not been compensated for this article.