According to Business Insider, Starbucks is laying off 1,100 corporate employees this week as part of a broader restructuring strategy. The company will also pause hiring for hundreds of open roles.

In a letter to employees, Starbucks CEO Brian Niccol stated that the decision aims to simplify the company’s structure, remove redundancies, and create more agile teams. “Our intent is to operate more efficiently, increase accountability, reduce complexity, and drive better integration,” Niccol explained.

The layoffs will not impact Starbucks’ retail store employees, commonly referred to as “partners.” Currently, 16,000 employees work across Starbucks’ corporate offices and roasting operations, though not all are affected by the job cuts.

Since taking over as CEO in September last year, Niccol has focused on revitalising sales in the US, Starbucks’ primary market. His strategy includes prioritising the customer experience by enhancing support for baristas.

Despite the layoffs, Starbucks remains committed to improving store operations. Recent changes include requiring customers to make a purchase to access store facilities, rolling back certain loyalty programme promotions, and encouraging baristas to personalise customer interactions with handwritten messages on cups.

Niccol acknowledged that the news is difficult for affected employees but emphasised that these changes are necessary to position Starbucks for future success.