Starbucks Withdraws Bathroom Access, Now Announces Layoffs to "Overcome Poor Performance"

Tightening Measures After Three Consecutive Quarters of Declining Sales
"Changes to Be Announced by Early March"

Starbucks has announced layoffs to overcome sluggish sales and improve profitability, according to a report by the US local media Fox Business on the 23rd (local time).

Brian Niccol, CEO of Starbucks, recently sent a notice containing this information to employees. Layoffs were also announced through the Starbucks website. He said, "We have recently started the work of clarifying support organizations for the future. Unfortunately, we expect layoffs and reductions in support teams going forward," and promised to inform about changes by early March. He did not disclose the specific scale of layoffs but stated, "There will be no impact on store teams."

Starbucks has announced layoffs to overcome sluggish sales and improve profitability. Photo by Starbucks

Recently, Starbucks has been experiencing sluggish sales in its largest overseas market, China, due to intensified competition after COVID-19 and a boycott movement centered in the Middle East. It recorded three consecutive quarters of sales decline until October last year and suspended its outlook for the 2025 fiscal year to transition its system and establish new strategies. Accordingly, Rakesh Narasimhan, who had led Starbucks since March last year, stepped down taking responsibility for poor performance. Niccol, who led the fast-food chain Chipotle Mexican Grill, was recruited as a "relief pitcher" in September last year.

This is not the first time Starbucks has reduced its workforce to overcome sluggishness. In November last year, Starbucks announced through a disclosure that the total number of employees in the US (as of September 29) decreased from 228,000 the previous year to 211,000. Among them, 201,000 were store employees, an 8% decrease compared to 219,000 the previous year. Starbucks also reduced the number of workers in 2023.

Recently, Starbucks decided to open stores and restrooms only to customers. This retracts the policy of fully opening stores regardless of order status, which had been implemented since 2018, after seven years. Going forward, baristas must ask those who do not comply with this code of conduct to leave the store, and free water will be provided only to customers and their companions.

This content was produced with the assistance of AI translation services.