Starbucks CEO Makes Bold Claim After Massive Layoffs

Amidst major changes company-wide, including the streamlining of operations and a move away from the use of single-use plastic cups, Starbucks CEO Brian Niccol recently applied further pressure on the coffee giant's corporate employees.

According to Niccol, a call for stronger leadership is in order while the brand makes sweeping operational changes and plans for the future. Niccol addressed Starbucks staff in Seattle for the first time since announcing layoffs last month, and pointed out many inefficiencies in the company’s operations. He also placed blame on “decision-making processes” for contributing to the brand's recent struggles.

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“We’re not effective,” Niccol told staff as he labeled the recent layoffs as being “necessary to address these issues.”

As of this year, Starbucks has officially experienced four consecutive quarters of declining sales, further emphasizing the need for major change. And as inflation continues to rise and consumers’ spending habits change in response, the brand can’t help but feel the pressure to find a viable solution.

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Niccol’s plan, known as the “Back to Starbucks” strategy, aims to restore the brand's previous momentum and “return to its roots.” Some of the operational changes include making fresh-brewed coffee in under four minutes, cutting the menu by 30-percent, bringing back condiment bars and limiting mobile orders to 12 items per customer. The brand is also rumored to be reintroducing ceramic mugs and hiring more baristas. An influx in Starbucks TV ads are also a discussion on the table.

It seems like Niccol’s strategy, albeit a harsh reality for some employees, is a necessary overhaul of the business at a time where Starbucks is facing a rise in competition in China. With the popularity of brands like Luckin’ Coffee and other local $1 bubble tea shops on the rise, Starbucks is experiencing a drop in popularity that it would otherwise like to avoid.

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While Niccol would like corporate employees to work harder and take accountability for the brand's financial health, his approach is nothing new for Starbucks staff. Just last year, employees were told that they must return to the office for in-office work at least three days a week or be forced to leave the company.

Additionally, the brand recently reversed its famed open-door policy, which gave customers a chance to sit and use the bathrooms. This decision has led to tremendous backlash online, as the policy was implemented in 2018 after an arrest of two black men at a Philadelphia Starbucks location. For now, it seems like Niccol plans to steer clear of reversing the company's stance on the matter, and instead continue to close more locations nationwide.

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