Starbucks plans layoffs, 'significant changes' to company

By RetailFOXBusiness

Starbucks to close 150 stores

FBN's Tracee Carrasco on Starbucks' decision to close 150 underperforming stores.

Starbucks plans to lay off some corporate employees and institute leadership changes as part of an organizational shakeup, according to an internal memo from CEO Kevin Johnson.

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“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,” Johnson wrote in an email to employees last week.

Johnson also said Starbucks will make “some significant changes” to leadership roles and how functional groups are structured. Job cuts will not include retail staff, FOX Business has learned.

Shares of Starbucks fell 1.32 percent Monday.

The corporate restructuring comes as Starbucks turns its focus to rapidly expanding in China and other global markets. The coffee chain’s sales growth in its home market has slowed, and the Seattle-based company plans to close about 150 U.S. stores next year.

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Starbucks has also undergone a transition at the top of the company. Howard Schultz, credited for turning Starbucks into a coffee giant, stepped down as executive chairman in June. Former J.C. Penney chief Myron E. Ullman was named chairman.

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Bloomberg was first to report on Starbucks’ organizational changes.

FOX Business’ Cheryl Casone and Rachel Sherman contributed to this report.

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