In a bold move to revitalize operations, Starbucks has announced the layoff of 1,100 corporate employees globally, as new CEO Brian Niccol takes charge of the company’s strategic direction. Niccol's plan includes eliminating several hundred open and unfilled positions to streamline operations and improve overall efficiency. In a letter to employees, he highlighted the necessity of reducing complexity and accountability, citing that too many management layers hinder communication. In conjunction with these layoffs, Starbucks is also reversing its open-door policy, which previously welcomed non-customers into stores. This shift aims to enhance the customer experience and re-establish Starbucks locations as community gathering spots.

The company's global same-store sales have declined by 2% in the fiscal year ending September 29, prompting these urgent measures. Niccol's leadership will also focus on optimizing service times, particularly during peak hours, and refining the menu to better meet customer demands. As Starbucks faces growing competition, especially in markets like China, these initiatives are vital for maintaining its market position.