Starbucks is undergoing a restructuring that entails layoffs of roughly 10% of the corporate workforce of 3,500.
Divisions including Evolution Fresh are reportedly being shifted to the back burner. A team assigned to develop new retail strategies and to manage international franchise expansion of Teavana was eliminated. These are the first corporate layoffs since 2009.
The staff reductions are designed to refocus resources. The company reported a record $4.8
billion in revenue with profits of $983.1 million for the quarter, up 80% compared to the previous year. No employee layoffs were reported at the store level, according to Starbucks which confirmed the layoffs in late January. The company now operates 21,878 locations worldwide and announced ambitious plans to generate $30 billion in sales in the next five years.