After Narayana Murthy’s Infosys, now this company sacked many employees due to…, the company is…
GH News February 25, 2025 01:06 PM
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Indian IT major Infosys recently faced criticism after terminating over 300 trainees from its Mysuru campus. The company however cited performance issues as the reason stating that these employees failed all three assessment tests. The decision sparked backlash from employees unions and the public. In an official statement Infosys confirmed the layoffs but maintained that it was a necessary step to uphold its performance standards.
Infosys now US-based coffeehouse giant Starbucks has now revealed plans to lay off 1100 corporate employees worldwide.
Starbucks Layoffs
Joining the trend Starbucks has disclosed plans to lay off 1100 corporate support employees globally. The decision is part of new Chairman and CEO Brian Niccol’s efforts to streamline operations and improve organizational efficiency. Starbucks has a global corporate workforce of 16000 employees meaning the layoffs will impact nearly 7% of its corporate staff. It is important to note that Starbucks’ baristas and other in-store employees will not be affected by these cuts as the layoffs are limited to corporate roles.
In a letter to employees released Monday Niccol said the company will inform employees who are being laid off by mid-day Tuesday. Niccol said Starbucks is also eliminating several hundred open and unfilled positions.
“Our intent is to operate more efficiently increase accountability reduce complexity and drive better integration” Niccol wrote in the letter.
Starbucks has 16000 corporate support employees worldwide but that includes some employees who arent impacted like roasting and warehouse staff. Baristas in the companys stores are not included in the layoffs.
Starbucks CEO On Layoffs
Niccol said in January that corporate layoffs would be announced by early March. He said all work must be overseen by someone who can make decisions while the the Seattle coffee giant reduces the complexity of its structure and eliminates silos within the company that slow communication.
“Our size and structure can slow us down with too many layers managers of small teams and roles focused primarily on coordinating work” Niccol wrote.
Starbucks hired Niccol last fall to turn around sluggish sales. He has said he wants to improve service times — especially during the morning rush — and reestablish stores as community gathering places. Niccol is also cutting items from Starbucks menu and experimenting with its ordering algorithms to better handle its mix of mobile drive-thru and in-store orders.
Starbucks global same-store sales or sales at locations open at least a year fell 2% in its 2024 fiscal year which ended Sept 29. In the US customers are tired of price increases and growing wait times. In China its second-largest market Starbucks faced growing competition from cheaper rivals. Starbucks shares were flat in premarket trading Monday.