Will Starbucks’ 1,100 National Layoffs Affect Baristas?

The layoffs are part of a multi-step plan to help the company, and they have begun.

2024 was not good for Starbucks

Armed with a new CEO, Starbucks has embarked on a new reorganization and streamlining plan they hope will help them regain more of their old market share in the coffee world.

Since late fall of 2023, the coffee giant has had four straight quarters of slipping and declining sales and revenue, and is facing some internal turmoil. They have also, twice over the last few months, slashed their revenue projection reports considerably.

CEO Brian Niccol came over from Chipotle' in 2024, and company officials hope he can right their ship. The new plan involves laying off 1,100 corporate workers, but baristas will not be included in the nationwide cuts.  Starbucks is also examining its ordering algorithms for its drive-thru, online, and in-store ordering processes.

Also, CEO Niccol has cut some items from the Starbucks menu, presumably ones that cost them more to carry, and don't sell as well.

 According to Breitbart News, the company's woes stem from several sources. They include increased and cheaper competition globally, regionally, and locally--as consumers look for more affordable options.   On a local note, in the Columbia Basin and Tri-Cities, local competition has exploded over the last few years, and so has local loyalty.

Even in Starbucks' backyard, the Pacific Northwest, the competition has grown significantly, and made an impact on their business.

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Breitbart also cited dissatisfaction from consumers who felt the company spent too much effort on, and supported too loudly, DEI and other controversial policies. On the other side, they're getting pressure from activist investors to continue along that path. That has created some internal turmoil.

CEO Niccol, according to the Associated Press, wants to improve their service wait times, and work to turn stores into places where people gather.