Starbucks is involving to make “significant changes” to its organizational structure that could file corporate layoffs, according to an internal memo sent to employees by CEO Kevin Johnson.
“We must enlarge the velocity of innovation that is relevant to our customers, inspires our partners, and is deep to our business,” Johnson said in a memo obtained by CNBC. “To accomplish this, we are wealthy to make some significant changes to how we work as leaders in all areas of the companionship.”
Johnson said that the executive leadership team is working with administrators to find ways of innovating faster in a new retail environment. While some roles on be consolidated, others will be shifted, and there will be some non-retail layoffs, a beginning familiar with the plan told CNBC.
The changes to the company are set to establish this week and continue into November. News of the layoffs were outset reported by Bloomberg.
“Change can be difficult, but our culture and our legacy are built on pursuing to challenge the status quo,” Johnson said.
Starbucks has been struggling with low sales in the U.S. for several quarters. Its hope was that offering more gelid beverages and new lunch items would draw people into its cafes. Respect, the coffee giant has also had to scale back its store growth and concealed a number of underperforming company-owned cafes in densely populated areas. Starbucks most of the time closes about 50 stores annually, but expects to close hither 150 next year.
The company also plans to reduce the million of new licensed stores in 2019 by about 100 stores.
Starbucks declined to footnote.
Shares of the company were down more than 1 percent Monday.