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Starbucks will shorten 1,100 office jobs because the new managing director Brian Niccol tries to revive the world’s largest café shop chain.
The company announced on Monday that employees in corporate functions would have to work from a distance this week because the employees who are released are informed.
The work cuts are the first for Starbucks Company workers since 2018 when around 350 were eliminated. Starbucks does not cut jobs in his cafés.
Employees who are released will receive a message on Tuesday, said the company.
Niccol arrived in September with the aim of turning Starbucks over because pedestrian traffic and sales were lower. Sales in the same business sank 4 percent in the quarter that ended in December.
In A Letter to the staff On Monday, Niccol said that Starbucks would do 1,100 jobs that were currently occupied, as well as “several hundred” open and unused positions.
Most of the 361,000 Starbucks employees work in the more than 21,000 cafes that are operated worldwide. Around 16,000 are employed in corporate support, including the headquarters in Seattle as well as in development, roast, production, storage and sales. Starbucks did not state the number of company support jobs available in the company.
Niccol announced the upcoming job cuts last month and said the company had too many shifts. “Our intention is to work more efficiently, increase the accountability, reduce complexity and promote better integration,” he said on Monday.
The shares ended by 1.3 percent higher on Monday in Wall Street.
In his message, Niccol said that the company manager with the status of a vice president or higher who work from a distance now have to spend at least three days a week in Starbucks’ offices in Seattle or Toronto, the Canadian basis of the company. Employees with titles from the director and below with remote working status can maintain this status.
The employment contract for Niccol, which was hired by Chipotle Mexican Grill from Newport Beach, California, promised him a “little one Remote officeIn the city and said he didn’t have to move to Seattle. According to a securities registration, the Newport Beach office has not yet been completed last month.
According to Starbucks, Niccol travels worldwide to lead a company that works in 88 markets, not only from its headquarters in Seattle, but also works out of business and is involved with customers and stakeholders. The company reported sales of USD 36.2 billion last year.
This week Starbucks asked the companies to work from a distance because the 1,100 employees who are released are informed, citing the privacy of privacy. Those whose jobs have been shortened received an e -mail from a member of the Executive Leadership team, said the company.
