Starbucks Corporation (SBUX, Financial) has seen an 8% reduction in its U.S. retail workforce over the past fiscal year, even as the coffee chain opened hundreds of new stores. According to recent regulatory filings, the company's total number of employees in its domestic market dropped to 211,000 as of September 29, down from 228,000 the previous year. Specifically, 201,000 employees are working in the company's cafes, marking an 8% decrease from 219,000 in 2023.
This marks the second consecutive year of declining employee numbers for Starbucks in the U.S. Meanwhile, the company has added a net total of 513 self-operated stores, bringing the total to 10,158 locations. The operational strategies of Starbucks have come under scrutiny following the sudden departure of CEO Laxman Narasimhan due to declining sales. Industry veteran Brian Niccol has taken over as CEO, aiming to steer the company towards recovery by simplifying the menu and enhancing seating comfort to boost cafe appeal.
An internal survey conducted by the company in April highlighted low satisfaction with staffing levels, with employees expressing concerns over minimal staffing. Some employees noted that understaffing has led to backlogs in drink and food orders. In response, Starbucks has increased the average weekly working hours for employees, allowing them to earn more and retain benefits. The company is also working on better aligning staffing levels with the specific needs of each store.
