Entrepreneur | Posted on
Earlier mid-year, Howard Schultz left the CEO position in Starbucks after his near-four-decade strong presence in the company. This sent a shockwave among investors. And seems like the ripples can still be seen and felt.
(Courtesy: Wall Street Nation)In September, Starbucks, the largest coffee retailer in the world, announced that it will be restructuring the organization, including juggling with the leadership positions.
“'There will be some job losses, some role expansions, and redeployments,' a company spokeswoman said at the time. (As quoted on Daily Mail.)
The latest layoff of 350 global corporate employees comes in the backdrop of the same announcement. First reported by the Wall Street Journal and then resources reviewed by the Reuters, this big cut in the workforce is made to make Starbucks viable enough to tackle highly competitive coffee market in the US. Also, given the company is fiercely expanding in the Chinese market, the move comes to add agility to its cost-planning and growth.
"Every single decision was made after very careful consideration... And while incredibly difficult, they came as a result of work that has been eliminated, deprioritized or shifting ways of working within the company," new Starbucks CEO Kevin Johnson said to the employees in a memo.
Noteworthy, the layoff of 350 global corporate employees at Starbucks would primarily hurt its Seattle Support Center.
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