Have you heard about the latest developments at Starbucks $SBUX (+1.43%) heard? CEO Brian Niccol has announced that 1,100 employees will be laid off this week. This is part of a comprehensive plan to restructure the company.
In a letter to employees, Niccol explained that the layoffs are necessary to simplify the company's structure. The aim is to create less complex and more efficient teams. This decision will also affect several hundred unfilled positions worldwide.
The affected employees will continue to receive their salary and current benefits until May 2. There is also a comprehensive severance package based on the length of their employment and career planning support.
Starbucks currently employs around 361,000 people worldwide, with the majority working in stores. The planned redundancies mainly affect the 16,000 corporate employees, while the majority of in-store employees are not affected.
What do you think of the measures Starbucks is taking? Is this the right path for a successful future?
