
Starbucks is laying off 1,100 corporate employees as part of a strategy to streamline operations amid significant financial losses linked to boycotts over Israel's actions in Gaza. CEO Brian Niccol stated that the company needs to simplify its structure and enhance efficiency to navigate these challenges. This move represents one of the largest reductions in its history, affecting both current employees and unfilled positions.
The layoffs are part of Starbucks' "Back to Basics" plan, which seeks to refocus on its core coffeehouse identity while responding to market pressures. Executives in North America are now required to work from Seattle or Toronto offices three days a week.
In recent months, Starbucks reported a loss of $15.1 million, heavily influenced by consumer boycotts, particularly in Malaysia, where significant losses were reported. Additionally, Saudi Arabia’s Public Investment Fund has slashed its U.S. equity holdings by 42%, including its stake in Starbucks, due to similar sentiments.