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Starbucks tipped to shake-up structure and cut corporate staff

Starbucks is bracing itself for an organisational shake-up as it plans to cut corporate staff, with leadership and organisational changes will taking place until November, according to Bloomberg sources.

According to a staff memo seen by the news outlet, CEO Kevin Johnson said that the coffee giant must increase the velocity of innovation which is relevant to its customers and inspiring for its partners as well as meaningful to its business. To accomplish this, the company plans to are going to “make some significant changes” to how it works as leaders in all areas of the company.

The coffee giant is also seeking to reverse stagnant sales and “rekindle” investors’ interest. With the fast-growing regional chains’ demand for frappucinos, the coffee giant is looking to quicken the arrival of its new menu items as it also works on reducing waste and pushing innovation in other areas.

Currently, there are approximately 10,000 Starbucks employees in the US support facilities, store development, roasting, manufacturing, warehousing and distribution operations as of last year October.

Marketing has reached out to Starbucks for comment on Asia Pacific operations.

Most recently, Starbucks unveiled plans to build 10,000 “greener stores” globally by 2025, a move with the potential to save the brand an incremental US$50 million in utilities over the next 10 years. The move comes as Starbucks aims to deepens its sustainability commitment. Johnson also said in a statement that leading a large company is “not just about profit”, but also about doing what’s right, and continuing to look for new ways to build on that.

The coffee and beverage giant has been treading the path to “go green” when in July, it planned to eliminate plastic straws globally by 2020. As an alternative, Starbucks revealed plans to introduce strawless lids and alternative-material straw options including paper or compostable plastic to replace single-use plastic straws in its 28,000 stores around the world.

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