Starbucks plans to lay off 1,100 corporate employees globally as new chairman and CEO Brian Nicoll seeks to boost efficiency.

In a letter to employees released on Feb. 24, Nicoll said the company would inform those laid off by noon the next day, Euronews reported.

The executive said Starbucks is also eliminating several hundred open and unfilled positions.

"Our intention is to operate more efficiently, increase accountability, reduce complexity and achieve better integration," he added.

Starbucks has 16,000 corporate support employees worldwide, but that includes some employees who are not affected, such as bakers and warehouse staff. Baristas at the company's stores are also not included in the cuts.

The laid-off employees will receive a salary for a short period of time as well as health care and career transition services.

In January, Nicole said the company's layoffs would be announced by early March.

He said the entire operation should be overseen by a person who can make decisions while 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 because we have too many levels, small team leaders and positions that focus primarily on coordinating work," the executive says.

Starbucks hired Nicole last year to reverse the trend of slowing sales.

He said he wanted to improve service times, especially during the morning rush, and re-establish stores as community gathering places.

Nicole is also cutting back on Starbucks menu items and experimenting with ordering algorithms to better handle the mix of mobile orders, drive-through orders and in-store orders.

Starbucks' global same-store sales, or sales at locations open at least a year, fell 2% in fiscal 2024, which ended Sept. 29.

In the U.S., customers have grown weary of price hikes and increased wait times.

In China, Starbucks' second-largest market, the company faces growing competition from cheaper rivals. | BGNES