Starbucks announced on Monday that the company is laying off 1,100 corporate employees by Tuesday morning and eliminate hundreds of open roles.

Starbucks CEO Brian Niccol said in a letter to employees on Monday that the company is simplifying its structure by shedding redundant roles and "creating smaller, more nimble teams."

"We believe it's a necessary change to position Starbucks for future success," Niccol added.

The intent of the layoffs is "to operate more efficiently, increase accountability, reduce complexity and drive better integration," Niccol said in the letter. "All with the goal of being more focused and able to drive greater impact on our priorities."

Niccol first announced in January the company was planning layoffs as he worked on a turnaround for the business. He took the office in September 2024 after a tough year for the Seattle-based coffee giant.

Starbucks' sales at its cafes slipped by 4 percent compared to the year before, according to the company's 2024 fourth quarter financial report. Profit-per-share also dropped 23 percent in the quarter.

Partially due to the CEO transition at the end of Starbucks' fiscal year, the company suspended a financial forecast for 2025. 

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