Starbucks to cut 1,100 corporate jobs globally

MEXICO CITY (AP) - Starbucks plans to lay off 1,100 corporate employees globally as new President and CEO Brian Niccol streamlines operations.

In a letter to employees posted Monday, Niccol said the company will inform those who will be laid off by noon Tuesday. He also mentioned that Starbucks will eliminate several hundred open and unfilled positions.

“Our intention is to operate more efficiently, increase accountability, reduce complexity and foster better integration,” Niccol wrote in the letter.

Starbucks has 16,000 corporate support employees worldwide, but that includes some employees who won't be affected, such as baristas, coffee experts and warehouse workers.

Niccol said in January that corporate layoffs would be announced in early March. He said all work must be overseen by someone who can make decisions as the Seattle coffee giant reduces the complexity of its structure and eliminates silos within the company that slow communication.

“Our size and structure can slow us down, with too many layers, small team managers and roles focused primarily on coordinating work,” Niccol wrote.

Starbucks hired Niccol last fall to turn around sluggish sales. He has said he wants to improve service times, especially during the morning rush hour, and reestablish stores as community gathering places.

The CEO is also removing menu items and experimenting with ordering algorithms to improve its mix of mobile, drive-thru and in-store ordering.