Starbucks CEO Brian Nichol says the company's app needs to be more transparent about pricing.
World coffee house Starbucks chain CEO Brian Nicol will cut the company's jobs as he continues to implement changes to bolster lagging sales and improve profitability.
Nicole made the announcement in a notice to employees that was also posted on Starbucks' website.
He highlighted how the company aims to deliver on its “Back to Starbucks” strategy, a series of changes announced last year aimed at improving the in-store experience for customers, but also said it must strive for better efficiency, which ultimately results in will give in dismissal
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We have recently started work on defining the support organization for the future. We approach this task thoughtfully, but it will involve difficult decisions and choices. ” Nicole wrote.
People walk past a Starbucks coffee shop in Manhattan, New York, United States on January 15, 2025. (Mustafa Bassim/Anadolu via Getty Images/Getty Images)
This will not affect our store teams or the investments we make in store hours. “We will announce the changes by early March.”
He said he doesn't make such decisions lightly and wants to be transparent about his plans to ensure employees hear directly from him about the plans. It is unclear how many will be released.
Nicole, who Participated as CEO In September, it emphasized the need for the company to return to its roots as a coffee house.
The “Back to Starbucks” strategy aims to bring back some of the things that have made the company the most recognizable coffee brand in the world.
This includes bringing condiments back into stores and enhancing the cafe's aesthetic with personal touches, such as serving coffee in ceramic mugs.
Brian Nichol, CEO of Starbucks, pictured in 2015 (Photo by Robin Marchant/Getty Images/Getty Images)
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Starbucks also introduced and will stop using Sharpies to write customers' names on cups. Additional charge To customize drinks with non-dairy milk.
The company has also targeted a four-minute waiting time at cafes and introduced extended cover hours in more than 3,000 stores.
Earlier this month, the company said it only welcomes paying customers to socialize and use it Toilets in its stores. The move was made to prioritize customers who want to sit and enjoy its cafes.
Starting this spring, the company will double in size Paid parental leave benefits For workers, the company already offered six weeks of paid parental leave.
Among its latest goals to create a positive work culture, the company is also committed to filling 90 percent of retail leadership roles internally to ensure employees stay with the company longer and grow. It also continues to cover 100% of college tuition for thousands of employees as part of Starbucks' College Advancement initiative. Company shares to eligible partners
“We have a lot more work to do, but I'm pleased with the progress we've made and appreciate how everyone has rallied around this plan,” Nicholl wrote to workers.
A cup of Starbucks coffee is seen in this photo taken on March 5, 2024 at Cafe Manama, Bahrain. (Jakub Porzycki/NurPhoto via Getty Images/Getty Images)
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Before Nicol took over, the company was facing mounting pressure from nationwide unionization campaigns and back-to-back disappointing financial seasons with declining traffic. Nicole, who replaced the former CEO Laxman Narasimhan in August, It tries to increase profitability and create a better environment for workers.
Nicol has also faced a staff strike Hundreds of stores across the country.
Fox Business's Daniella Genovese contributed to this report.