Starbucks plans corporate layoffs, menu changes

CHICAGO • Starbucks Corp. is planning an organizational shake-up, including corporate layoffs that will start at top levels, as the coffee chain tries to reverse stagnant sales and rekindle investors’ interest.

“We must increase the velocity of innovation that is relevant to our customers, inspires our partners, and is meaningful to our business,” chief executive Kevin Johnson said in a memo to employees. “To accomplish this, we are going to make some significant changes to how we work as leaders in all areas of the company.”

The changes will begin this week and carry on into November, Johnson said. Starbucks employed about 10,000 in U.S. support facilities, store development, and roasting, manufacturing, warehousing and distribution operations, as of Oct. 1, 2017.

Contacted by Bloomberg News, a spokeswoman said the changes will entail an undetermined number of layoffs and include some employee shifts between departments.

It was not immediately clear if the changes would also apply in Canada, which has more than 1,200 Starbucks locations.

The coffee behemoth, now one of the world’s largest restaurant companies, is fighting back against fastgrowing regional chains as demand wanes for its signature Frappuccinos.

To counter this, Starbucks wants to speed the arrival of new menu items at its more than 28,000 cafés. It’s also pushing innovation in other areas including automating its back-of-store inventory system. Ready for retirement? Find out at Personal Finance, financialpost. com