Starbucks Fires 1,100 Employees, Largest Layoff In The Coffee Giant’s History
The major restructuring exercise comes amid boycott of US-based foods in response to Washington’s support for Israel’s genocidal war in Gaza.
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US-based coffee chain Starbucks recently announced that it will dismiss 1,100 workers.
A report by Turkish news outlet Anadolu Agency said Starbucks CEO Brian Niccol made the announcement on Monday (24 February).
“We are simplifying our structure, removing layers and duplication, and creating smaller, more nimble teams.
“Our goal is to operate more efficiently, increase accountability, reduce complexity, and drive better integration. All with the goal of being more focused and able to drive greater impact on our priorities,” he said in a statement.
Niccols has promised to make service quicker, improve the mobile ordering experience, and bring back the company’s former cafe atmosphere in-store.
Last September, Starbucks employed 16,000 corporate workers and the company stated that staffers in manufacturing, distribution, warehousing, and roasting as well as cafe employees will not be impacted by the layoffs.
Boycott of US-based foods
As Starbucks faces a series of quarterly sales reductions, the announcement from the American coffee chain coincides with a boycott of foods originating in the United States in response to Washington’s support for Israel during its genocidal assault in Gaza.
Since last month, Israel has imposed a cease-fire on Gaza, temporarily stopping its murderous campaign that has left the enclave in ruins and claimed the lives of at least 48,300 people, primarily women and children.
Outsourcing tech work following restructure
A Bloomberg report said Starbucks will be outsourcing some technology work after its recently announced corporate reorganisation that resulted in a major layoff event.
“We are realigning our resource mix of internal and outsourced talent,” according to a memo from Deb Hall Lefevre, Starbucks’ chief technology officer.
According to the document, the objective is to use service providers for “speed and agility” while relocating full-time employees to the company’s most critical projects.
Starbucks did not say to which third-party provider or how many positions would be outsourced. The company says it will continue to have a sizable in-house technology staff and engage outside labor for more mundane tasks.
Additionally, the memo said the IT team will go through a more comprehensive reorganization that will include engineering, data and analytics, and other departments.
Starbucks Malaysia donates to Palestine relief fund
Starbucks Malaysia’s year-long art project campaign “Starbucks Art For Good: The Bearista Art Project”, which pledged RM500,000 to support local artists and Palestine relief efforts, was recently concluded in a grand finale.
According to Malay Mail, Starbucks Malaysia pledged RM250,000 to the partipating artists, while the remaining RM250,000 went to Mercy Malaysia’s Palestine Relief Fund.
The campaign was launched in December 2023 to commemorate Starbucks Malaysia’s 25th anniversary.
The event was hosted at Pavilion Bukit Jalil from 22 to 24 February, honouring over 60 Malaysian artists including deaf, autistic, and emerging talents, who designed 25 unique life-sized “Bearista” figures.
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