MYNORTHWEST NEWS

Report: Starbucks is laying off 350 employees at Seattle HQ

Nov 13, 2018, 10:20 AM | Updated: 12:30 pm

Starbucks...

(AP)

(AP)

Starbucks is laying off hundreds of employees, including those working at its Seattle headquarters in SoDo.

The Seattle Times reports that the major coffee company is laying off 350 corporate employees. The bulk of these layoffs will be at the headquarters. No retail employees are being let go.

The layoffs come shortly after Starbucks announced that it was trimming a number of its employees. Starbucks CEO Kevin Johnson sent a memo to headquarters employees in September. He said that the company is planning for the next phase of its growth — layoffs and restructuring are part of that plan. Johnson wrote that the changes were aimed at knocking down “barriers” to decision making and speeding up the process of innovation.

The corporate layoffs are not the only employees Starbucks has lost in recent weeks. The company also let go of seven executives with titles ranging from senior vice president to president. Starbucks spokesman Reggie Borges told the Puget Sound Business Journal that the executive layoffs were both voluntary and involuntary departures. Some went to Nestle which recently partnered with Starbucks to sell its products.

Earlier in 2018, Starbucks was closing under-performing stores at a greater rate than in the past — it usually closes about 50 stores annually. It is expected to close about 150 before the year is out. The company also recently reported its third quarter earnings, which were up 11 percent from the previous year — net revenues of $6.3 billion. But the Times notes that the company has experienced “lackluster sales growth in important markets.”

Meanwhile, Starbucks has planned expansions in other markets, such as Japan.

The news comes nearly four months after Howard Schultz stepped down. Schultz led the company to worldwide domination over the past few decades.

RELATED: Starbucks expanding in Japan with help from Uber

RELATED: Starbucks cafes exceed number of McDonald’s, but are there too many?

MyNorthwest News

Image: The awnings of a store advertise the sale of lottery tickets, including Mega Millions and Po...

Steve Coogan

Lottery jackpots update: Powerball prize jumps again after $1.1B Mega Millions win

A lottery jackpots update: The Powerball prize reached an estimated $935 million ahead of Saturday night's drawing.

9 hours ago

Photo: The Judge Patricia H. Clark Children and Family Justice Center....

James Lynch

King County’s plan to close youth detention center met with fierce backlash

The King County Law and Justice Committee received a final report on Executive Dow Constantine's plan to close a youth detention center.

11 hours ago

Image: A cargo ship is stuck under the part of the structure of the Francis Scott Key Bridge after ...

Associated Press

Authorities identify 2 bodies recovered at site of Baltimore bridge collapse

A major bridge in Baltimore snapped and collapsed after a container ship rammed into it early Tuesday, and several vehicles fell into the river below.

13 hours ago

Photo: Mountaineer Jim Whittaker has died at 95....

Gene Johnson, The Associated Press

Lou Whittaker, among the most famous American mountaineers, has died at age 95

Lou Whittaker, a legendary American mountaineer who helped lead ascents of Mount Everest, K2 and Denali, has died at age 95.

13 hours ago

File photo: Former Sen. Joe Lieberman speaks in Washington on Jan. 18, 2024....

Associated Press

Former Sen. Joe Lieberman, Democrats’ VP pick in 2000, dead at 82

Former U.S. Sen. Joe Lieberman of Connecticut, who nearly won the vice presidency on the Democratic ticket with Al Gore in 2000, has died.

13 hours ago

Image: A Tacoma teen was shot outside her Tacoma Hilltop area apartment over the weekend....

Heather Bosch

Estranged boyfriend suspected in Tacoma teen’s death turns himself in

We're learning more about the man who's accused of fatally shooting a teenager outside her Tacoma Hill Top area apartment over the weekend.

14 hours ago

Report: Starbucks is laying off 350 employees at Seattle HQ