Starbucks is eliminating 1,100 corporate positions as part of an effort to streamline operations and address declining sales, CEO Brian Niccol announced Monday. The job cuts, affecting approximately 7% of the company’s non-retail workforce, come amid slowing consumer demand and a push to revamp the coffee chain’s business strategy.

The layoffs will not impact baristas or other employees working in company-owned stores. Instead, they target corporate roles deemed redundant or inefficient. Starbucks will also eliminate hundreds of currently unfilled positions.

In a statement, Niccol framed the decision as necessary to simplify operations and position the company for long-term success. The move follows a disappointing first quarter of the 2025 fiscal year, which saw global same-store sales decline by 4%.

Shares of Starbucks rose more than 1% on Monday morning following the announcement.

Addressing Operational Challenges

Since taking over in September, Niccol has prioritized improving the in-store experience, particularly addressing long wait times and managing mobile orders more efficiently. The company has also removed certain menu items and confirmed it will not raise prices in 2025.

Starbucks has made leadership changes as part of its broader restructuring efforts. Last month, the company appointed Mike Grams, a former Taco Bell executive, and Meredith Sandland, previously with Empower Delivery, to oversee store operations and development.

Labor Relations and Executive Compensation

Niccol joined Starbucks following a six-year tenure as CEO of Chipotle, and his compensation package was among the highest in the corporate world last year. In addition to a reported $96 million salary package, Starbucks provided a commuting allowance for him to travel between his home in California and the company’s Seattle headquarters.

Meanwhile, Starbucks continues to face labor challenges. A unionization movement that began in 2021 has led to more than 500 stores organizing under Workers United. Contract negotiations have been slow, but last month, Starbucks and the union agreed to mediation in hopes of breaking the deadlock.

As part of the restructuring, Niccol also announced a new office attendance policy, requiring vice presidents and higher-ranking employees to work from company offices in Seattle or Toronto at least three days a week.