Foreign media: Starbucks plans to lay off 5% of its coffee shop staff worldwide will not be affected

Professional coffee knowledge exchange more coffee bean information please follow the coffee workshop (Wechat official account cafe_style)

The US media quoted Starbucks CEO Johnson as saying in an internal memo that Starbucks plans to cut its workforce by 5% worldwide.

NASDAQ:SBUX plans to cut jobs, accounting for about 5 per cent of its global workforce, according to a memo issued by Kevin Kevin Johnson, chief executive of Starbucks on Tuesday, according to CNBC.

According to the memo obtained by CNBC, Johnson said the layoffs would affect about 350 marketing, creative, product, technical and store developers.

Mr Johnson said there would be "significant reforms" in the affected sector because Starbucks was narrowing its priorities to become a more responsive company. Although it was "extremely difficult" to make the decision, he said it was made by Starbucks after "very serious consideration". Johnson said the jobs affected were related to jobs that had been "eliminated" or "de-prioritized" before.

The layoffs at Starbucks were first reported in the Wall Street Journal.

The layoffs come as Starbucks said in September that it would overhaul its organizational structure and lay off its staff in the future.

Starbucks has been struggling with poor sales in the United States over the past few quarters, and the coffee giant has slowed its pace in expanding its chain stores, closing some of its own stores that are underperforming. Although Starbucks' same-store sales are still growing, investors have been hoping for higher sales growth. As Starbucks implements its reform plan, the company's performance has improved.

Roz Brewer, chief operating officer of Starbucks, has previously said that the company has streamlined some of its businesses with the aim of encouraging customers to spend more time in Starbucks stores.

Starbucks' same-store sales in the u.s. and the Americas grew by 4% in its fiscal fourth quarter, beating wall street analysts' average expectations of 2.7%. Johnson said it was the highest same-store sales growth in five quarters.

Starbucks said the number of members of its loyal membership program, Starbucks Rewards, increased by 15% compared with the same period last year to 15.3 million. Starbucks said revenue contributed by Starbucks Rewards plan members accounted for nearly 40 per cent of its total US sales.

END