Starbucks (SBUX, Financial) CEO Brian Niccol is making big changes at the coffee giant, pushing for accountability, efficiency, and a return to office culture as he works to turn around the company's declining traffic.
In a corporate meeting viewed by The Wall Street Journal, Niccol criticized Starbucks' organizational structure, calling for leaders to take ownership of financial and operational improvements. He pointed to inefficiencies in store operations and decision-making, stating that Starbucks isn't holding teams accountable for execution. To address this, 1,100 corporate employees are being let go, with more than half based in Seattle or working remotely.
Niccol is also urging 40% of remote employees to return to the office to improve collaboration and cut down on excessive meetings. “We have way too many follow-up meetings to fix too many surprises... we've got to stop it,” Niccol reportedly told employees. Niccol's leadership marks a shift from Starbucks' traditional focus on employee connection and inclusivity to a culture that prioritizes results and agility—similar to his approach at Chipotle (CMG, Financial). Since Niccol took over six months ago, Starbucks shares have climbed north of 20%, hitting a three-year high.
