Starbucks Corp. (SBUX) plans to lay off about 350 employees from its global corporate workforce.
CEO Kevin Johnson sent an internal memo to employees Tuesday notifying them of the layoffs, with areas including marketing, creative, product, technology, and store development being targeted for downsizing. The job cuts amount to roughly 5% of the company's global corporate workforce.
"Building the next chapter of Starbucks requires us to focus on fewer priorities and transform how our functional teams work in order to accelerate the velocity of innovation that is relevant to our customers, inspiring to our partners, and meaningful to our business," the memo viewed by TheStreet says.
Earlier this fall, Starbucks released another memo foreshadowing the layoffs, saying that "there will be leadership shifts and non-retail partner impacts as we evolve the direction of teams across the organization in size, scope and goals."
The Seattle Times reported that the majority of the layoffs were expected to occur at the company's Seattle headquarters.
Two weeks ago Starbucks reported disappointing quarterly results as sales rebounded, but the cost of those sales increased, resulting in a shrinking operating income for the coffee conglomerate.
"I've talked about the need to make these hard decisions for a while now, and I want you to know we will handle each situation with compassion and respect for the impacted partner. Their collective contribution to our success over the years is undeniable, and I know their influence will forever be reflected in who we are as a company," CEO Kevin Johnson said in the memo.
Starbucks shares are down 0.2% on Tuesday. The stock has risen nearly 18% year to date.