Starbucks is undergoing "significant" organizational and leadership changes, changes that will reportedly include corporate layoffs.
In a memo to employees, Chief Executive Officer Kevin Johnson said: “We must increase the velocity of innovation that is relevant to our customers. ... To accomplish this, we are going to make some significant changes to how we work as leaders in all areas of the company.”
The number of layoffs hasn't been decided but the cuts are part of efforts to curb stagnant sales. Starbucks typically closes about 50 stores a year, but it plans to close about 150 in 2019.
In recent months, the company has claimed sales are struggling because of recent health trends that are keeping people away from high sugar items like Frappuccinos. Restaurant analysts have cited increased competition as a cause.
Changes beyond layoffs include moving employees to different company departments. They're set to begin this week and continue through November.