Starbucks to cut corporate staff as it shakes up its organization

The changes to the company are set to begin this week and continue into November. News of the layoffs were first reported by Bloomberg.

“Change can be difficult, but our culture and our legacy are built on continuing to challenge the status quo,” Johnson said.

Starbucks has been struggling with weak sales in the U.S. for several quarters. Its hope was that offering more cold beverages and new lunch items would draw people into its cafes. However, the coffee giant has also had to scale back its store growth and close a number of underperforming company-owned cafes in densely populated areas. Starbucks usually closes about 50 stores annually, but expects to close about 150 next year.

The company also plans to reduce the number of new licensed stores in 2019 by about 100 stores.

Starbucks declined to comment.

Shares of the company were down more than 1 percent Monday.

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