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Starbucks plans to downsize its management as part of a business reshuffle that, he hopes, will help boost sales and accelerate its growth abroad.
The global coffee giant will fire non-commercial employees at the vice president and senior vice president level, a spokeswoman said on Monday. In a memo last week, CEO Kevin Johnson advised employees of a reorganization to help the company grow internationally, particularly in fast-growing markets such as the United States. China.
"We need to increase the speed of innovation that is relevant to our customers, inspire our partners and that is meaningful to our business," Johnson wrote in the memo. "To do this, we will make significant changes to the way we work as leaders in all areas of the business and how business groups are structured to support our retail stores."
Mr. Johnson did not detail his plans in the memo. Starbucks declined to say how many people would be affected or how many employees held the titles of senior vice president or vice president. The Seattle-based coffee chain employs 277,000 people worldwide, according to its latest annual financial statement. Most of these employees work in Starbucks stores or support facilities.
The restructuring, previously announced by Bloomberg, will end in mid-November.
Starbucks has also seen some changes at the highest level. Its founder, Howard Schultz, resigned from his position as executive chairman in June. Later in the month, the company announced that its chief financial officer, Scott Maw, would retire in November, causing stocks to plummet.
Expansion plans offset the company's stagnant sales in the United States, where smaller regional competitors have gained ground, and customer demand for Frappuccino's signature Starbucks has declined. Comparable store sales – a measure of performance – increased only 1% in the last quarter, a sign that the company needs to find new areas of growth in the country and at home. foreign.
This month, hundreds of Italians queued to enjoy espresso and cappuccino at the country's first Starbucks coffee shop.
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