Starbucks has announced that it will reduce the size of its corporate staff, as it plans to lay off 1,100 employees and close the door on several other positions that are currently unfilled.
The news was shared on Monday by Starbucks CEO Brian Niccol, who also noted that the layoffs will not affect any workers at the company’s coffee stores.
The news was shared in a message to corporate employees, in which Niccol said that the company was “simplifying our structure, removing layers and duplication and creating smaller, more nimble teams.”
“Our intent is to operate more efficiently, increase accountability, reduce complexity, and drive better integration,” Niccol wrote. “All with the goal of being more focused and able to drive greater impact on our priorities.”
The decision to reduce staff comes as Starbucks continues to fight to bring back consumers to its coffee shops, as same-store sales have declined for four straight quarters, according to a report from CNBC.
Price-weary consumers in the U.S. and China have opted to get their coffee from Starbucks’ cheaper rivals, hurting the company in its two largest markets.
Niccol, who was previously the head of the fast-casual Mexican eatery Chipotle, has been working to change strategies at the coffee giant, including by speeding up service, requiring purchases to loiter, and bringing back fan favorite policies.
As of last year, Starbucks employed around 16,000 people outside of its store locations. The cuts announced on Monday are expected to affect corporate support, not roasting, manufacturing, warehousing, and distribution staff.