Major personnel changes! Starbucks announces layoffs!

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According to a number of foreign media reports, local time 17, Starbucks announced the restructuring of the corporate team, and will lay off staff, has not yet disclosed the specific job cuts and the number of people, the relevant details will be announced in March this year.

In a memo to employees, Starbucks CEO Brian Nicole revealed that the company needs to simplify its management structure, ensure that there is a clear person in charge of each task, and reduce corporate complexity and gaps within the department.

In his letter, he pointed out that the existing size and organizational structure of the company may slow down the efficiency of decision-making, there are too many people responsible for managing small teams, the main role is to coordinate. As a result, the company plans to cut some jobs.

"I will not make these decisions rashly, and I know it will lead to uncertainty and concern now and in the future," Brian stressed, adding that he hoped to communicate the company's progress and plans to employees through the letter.

According to Starbucks' annual report released last year, Starbucks had about 361000 employees worldwide as of September 29, 2024, most of them baristas in stores and about 10, 6000 in corporate staff. including development, baking, warehousing and distribution operations and other non-store positions. As for the layoffs, Brian said it will not affect baristas in Starbucks stores, and other details will be announced before March.

In fact, in addition to clarifying the company's layoffs, CEO Brian Nicole has announced two major executive changes in recent days.

According to tiny Times on January 16, Wang Jingying (Belinda Wong), chairman of Starbucks China, decided to retire from the company on January 24. After that, Liu Wenjuan, who took office last year, will continue to "play a leading role" for Starbucks China, leading Starbucks' operations in China.

Wang Jingying (Belinda Wong)

Wang Jingying joined Starbucks in 2000, became president of Starbucks China in 2011, promoted to chief executive of Starbucks China in 2016, and became chairman of the newly established Starbucks China in 2019, according to public sources. According to Starbucks public data, although Starbucks entered the Chinese market as early as 1999 before Wang Jingying took over, it only opened more than 400 stores in more than a decade, which once faced the risk of withdrawal.

Under the leadership of Wang Jingying, the brand has experienced a great-leap-forward growth in China, with more than 7000 stores in 2011, more than 200 cities and more than 60, 000 partners. At the same time, Wang Jingying also launched a variety of innovative store types, such as "Zhenxuan", which emphasizes space design and coffee experience. During this period, China has become Starbucks' fastest-growing and largest overseas market in the world.

It can be said that without Wang Jingying, Starbucks China would not have today's success. As a key contributor to expanding its business in China, Wang Jingying has been praised by Schultz many times. "she may be the most valuable partner of the company."

After the change, on the day the layoffs were announced, Mellody Hobson, the former chairman of Starbucks' board and now Starbucks' chief independent director, also announced that she would not be re-elected, ending her 20-year term. Brian Nicole, the current chief executive of Starbucks, was introduced by her.

In other words, in just a few days, two senior executives inside Starbucks announced their departure.

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