IBNS-CMEDIA: Coffee giant Starbucks on Friday announced plans to cut 300 jobs in the United States and shut down several regional support offices as part of its ongoing business turnaround strategy.
According to media reports, the layoffs will not affect employees working at Starbucks coffeehouses.
The company said the combined severance expenses and reassessment of office space will result in restructuring charges of approximately $400 million, CNBC reported.
“We are taking further action under the Back to Starbucks strategy, building on our strong business momentum and working to return the company to durable, profitable growth,” a Starbucks spokesperson said in a statement to CNBC.
“Leaders have taken a hard look at their respective functions to further sharpen focus, prioritise work, reduce complexity, and lower costs,” the spokesperson added.
This marks the third round of layoffs announced since Brian Niccol took over as chief executive officer.
Despite the restructuring, Starbucks posted strong quarterly results, reporting a 7.1 percent increase in U.S. same-store sales, driven by a 4.3 percent rise in customer transactions, according to CNBC.
“Our second quarter marked the turn in our turnaround as our Back to Starbucks plan drove both top and bottom line growth,” Niccol, who also serves as chairman and chief executive officer, said in a statement.
“This is the Starbucks our customers deserve and the Starbucks we believe will deliver long-term growth and value for our partners and shareholders as we execute consistently, at scale,” he added.
