People exit a Starbucks in New York City.
Starbucks CEO Brian Niccol wants corporate employees to work harder and take accountability for the coffee giant’s financial health.
Speaking to staff in Seattle in his first address since announcing layoffs last month, Niccol pointed out that inefficiencies in the company’s operations and decision-making processes have contributed to recent struggles. “We’re not effective,” he said.
The layoffs, he explained, were necessary to address these issues, as the Wall Street Journal (NWSA) first reported. A Starbucks (SBUX) spokesperson later confirmed the details in response to a request for comment from Quartz.
Niccol’s tough love approach isn’t new for Starbucks staff. In Oct. 2024, employees were told they must work at least three three days a week in the office or leave.
Now, with four consecutive quarters of declining sales, Starbucks is continuing to navigate a “Big Fix.” But the company’s ability to capture market share has been further hampered by inflation, which has made consumers more cautious about their spending.