The Starbucks coffee chain, the largest in the world in its genre, announced that it will terminate the contract of 1,100 corporate employees, marking the largest layoff in its history, according to a letter from its CEO, Brian Niccol, made public this Monday.
In addition to these layoffs, the company - which has a global workforce of 16,000 people in corporate roles - will stop covering 'hundreds' of similar positions that were vacant, either due to duplication in their functions or other reasons.
Corporate employees are all those who do not serve customers in cafes, and the company has clarified that those laid off will not include those working in coffee roasting, warehouses, or product distribution.
The Wall Street Journal notes that the company faces a decline in sales due to the emergence of new competitors in a market where Starbucks previously had almost no rivals, in addition to complaints about the long lines that many customers endure before being served.
One of Starbucks' challenges in recent years has been to maintain a fast pace in service - both in-store and in online orders - and to offer an increasingly extensive range of 'customized' products, where the coffee or drink requested can have a dozen variations depending on the ingredients used.
The company has faced challenges with growing competition and demands for personalized service in a constantly changing market. The decision to reduce corporate staff and eliminate vacant positions is part of the adjustment strategy to address new challenges and maintain competitiveness.
