Starbucks is cutting down 5% positions from its corporate workforce globally


As the coffee market becomes highly competitive, Starbucks is struggling with attracting new and repeat customers. Previously, the sales of some of their popular drinks like Frappuccinos got down. Recently, their novelty drinks also failed to take off like the Unicorn Frappuccino once did. The customers are looking elsewhere for different and healthier options. So, they have decided to streamline their business model to boost their sales and retain their position back in the market.

Starbucks goes through Major Revamp

Earlier this year, the US coffee giant announced that it would streamline its business to keep the competition up with other premium coffee shops such as La Colombe and Blue Bottle. In this regard, they have already closed hundreds of their stores and expanded their mobile offerings. Moreover, they added more drive-thrus to facilitate their customers.

Now, as a part of a white-collar shakeup, it has decided to close 350 positions around the globe. This equals 5% of its global workforce. The Chief Executive Officer recently informed its employees that the company is going to cut down its workforce as a result of shifting the way of working within the company. This cut down will include some of the top positions from different departments including marketing, product, technology, creative, and store development.

starbucks axing force
Image Source: Mark Makela / REUTERS

Besides this, the company has decided to home in on the Chinese market as it is getting more sales in China compared to that in the US. In this regard, they have already opened more than 3000 coffee stores in China which are operating well. According to China’s CEO of the company, a new is opened in every 15 hours in the country. The 30,000-square-foot Reserve Roastery is the largest store of the company in Shanghai.

Moreover, new menu items and innovation have helped Starbucks stock surge 18% this year in the US. To get the company on a more profitable track, it has decided to streamline its European corporate operations as well. They are also looking for UberEats as one of their delivery options.


As Starbucks is following a slimline strategy in the US by opening up more mobile offerings to non-rewards members and drive-thrus, it has reported a record $6.3 billion revenue in the last quarter. This also boosted same-store sales by 4%. This strategy seems to be paying off so far to the company.


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