Times have been tough for coffee giant Starbucks, and layoffs are on the cards even for the highest levels of management.
“We must increase the velocity of innovation that is relevant to our customers, inspires our partners, and is meaningful to our business,” Starbucks chief executive officer Kevin Johnson wrote in a memo to staff. “To accomplish this, we are going to make some significant changes to how we work as leaders in all areas of the company.”
“Starting next week and into mid-November there will be leadership shifts and non-retail partner impacts as we evolve the direction of teams across the organization in size, scope and goals," Johnson wrote.
Starbucks has experienced slowing growth over the past years, with an average of around 8 percent growth each quarter in 2011 slowing to an average 2 percent growth in the first three quarters of 2018. The trend is echoed worldwide, with Restaurant Brands in New Zealand ditching the chain due to it accounting for barely any of their total New Zealand sales.
