Starbucks (SBUX) has announced plans to cut jobs as part of its effort to simplify operations and boost efficiency. The decision comes as the company faces rising competition and slower demand in major markets like the U.S. and China.
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The job reductions aim to remove extra layers of management and reorganize work teams for quicker decision-making. Starbucks’ CEO Brian Niccol explained, “Our size and structure can slow us down, with too many layers, managers of small teams, and roles focused mainly on coordinating work.” He announced that details of the job eliminations will be disclosed by early March 2025.
These changes are intended to help Starbucks move more efficiently.
SBUX’s In-Store Staff Will Not Be Affected
Starbucks assured that baristas and other in-store workers will not be affected by the changes.
The company is also focusing on enhancing the customer experience, with plans to improve store designs. As part of these upgrades, Starbucks will introduce more comfortable seating, ceramic mugs, and a redesigned condiment bar, all aimed at reducing wait times to under four minutes.
Is Starbucks a Buy or Sell?
Analysts remain cautiously optimistic about SBUX stock, with a Moderate Buy consensus rating based on eight Buys, six Holds, and one Sell. Over the past year, SBUX has increased by more than 4%, and the average SBUX price target of $106.77 implies an upside potential of 12.24% from current levels.
