Midlife crisis! Coffee giant Starbucks will wield a knife at the top, starting with the vice president.

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Starbucks will reorganize its organization and wield a knife from the top.

In an effort to reverse stagnant sales, STARBUCKS, the coffee chain, will overhaul its organizational structure, including a shake-up at the vice president and senior vice presidents.

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According to comprehensive foreign media reports, Starbucks CEO Kevin Johnson pointed out in a memo to employees that in order to speed up the pace of innovation, the company has decided to adjust the work mode of all business executives, and the level of layoffs may involve vice presidents and senior vice presidents; the number of layoffs has not yet been decided, but some employees will be transferred to other departments, while those working in retail stores will not be affected.

Starbucks previously announced that global same-store sales grew by only 1% in the third quarter of 2018 as the pace of store expansion affected performance growth, and is expected to close about 150 stores in the United States in fiscal year 2019, about three times the average number of stores closed each year.

Taiwan's Starbucks said that the Unification Group currently holds a 100% stake and will not be affected by changes in the United States.

In recent years, Starbucks' performance has declined frequently, which can be described as a reappearance of the "midlife crisis". A few days ago, according to foreign media reports, in order to reverse the current adverse situation, Starbucks plans to restructure the company, layoffs plan to start from the top, and try to attract the attention of investors. Starbucks midlife crisis reappeared in order to save the decline in performance, Starbucks chose to close stores and lay off employees. In fact, as early as May, Starbucks announced its decision to close 150 stores, which is also the largest closure plan in the company's history. the move reflects the current declining performance of Starbucks, and tries to reverse the current decline through shop closures and layoffs. But it is clear that Starbucks did not achieve the desired results.

Not only that, Starbucks' performance in China also declined for the first time in nine years. What is the reason for this? As a world-renowned coffee brand, Starbucks has been sought after by many Chinese consumers since it entered the Chinese market. The sales revenue of Starbucks stores is growing at a steady rate of more than 7% a year, but it has declined this year. There is no doubt that Starbucks' sales in China have been hit hard in recent years with the rise of Internet coffee brands led by Luckin Coffee and the rise of instant tea, as well as Starbucks' high pricing in China. Starbucks is also aware that with the rise of Internet coffee, its market share in China has been eroded and has to make changes.

Some time ago, Starbucks officially announced a partnership with ele.me and officially entered the takeout market. I don't know if this move will change Starbucks' current decline in the Chinese market. Maybe it will tell us the answer in the near future.

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