Starbucks will cut 1,100 corporate and administrative jobs as part of a reorganisation aimed at reigniting sales growth, the company’s new CEO said.

The decision follows a drop in profits and a 4% decline in global comparable store sales in the most recent quarter.

CEO Brian Niccol stated in a message to employees that the company was taking “the hard decision to eliminate 1,100 current support partner roles and several hundred additional open and unfilled positions.” The move would not affect “front-line coffee servers,” known as “baristas” within the company.

As of September 2024, the American coffeehouse company employed 361,000 workers, including 16,000 in administrative and support positions.

Niccol joined Starbucks in September 2024 as part of a leadership shakeup as the chain grapples with sagging sales. In a January 28 earnings conference call, he highlighted various pilot programme tests designed to reinvigorate the chain by speeding up customer service and restoring personal touches, such as notes from baristas to customers.

“We are simplifying our structure, removing layers and duplication, and creating smaller, more nimble teams,” Niccol said, “our intent is to operate more efficiently, increase accountability, reduce complexity, and drive better integration.”

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In addition to the job cuts, Starbucks plans to scale back its offerings by removing less popular beverages from its menu. This includes certain Frappuccino-blended drinks that are not commonly purchased, are complex to make, or overlap with other menu items.

Following the announcement, shares of Starbucks rose by 1.6 per cent shortly after midday.