More than 1,000 corporate employees at coffee chain Starbucks are being laid off.
Employees received a message from Chairman and CEO Brian Niccol saying that those affected will find out that they are losing their jobs by mid-Tuesday, The Associated Press reported.
The company also said it will cut several hundred open and unfilled jobs.
“Our intent is to operate more efficiently, increase accountability, reduce complexity and drive better integration,” Niccol wrote in a letter posted to the company’s website.
The company currently has 16,000 corporate support employees globally. The AP said that roasters, warehouse workers and baristas are not included in the layoffs.
Niccol warned employees in January that there would be layoffs announced in early March, as he tries to simplify the company’s corporate structures including getting rid of silos that slow communication.
Starbucks has been experiencing quarterly sales slumps attributed to people looking for more economical coffee or faster lines, The Wall Street Journal reported.
Niccol has promised faster service, better mobile ordering and the return of the company’s previous cafe feel.
The layoffs announced on Monday are one of the largest to hit the company, the newspaper said.
Check back for more on this developing story.
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