Article Summary Starbucks to Lay Off 5% of Corporate Workforce

        In this article, the details have been shared regarding the news coming from Starbucks that they are going to cut down 5% of their global corporate workforce. The decision has been made because the competition in the coffee market is getting intense and company is facing issues in terms of getting more customers for its U.S based coffee shops. As per details released by Starbucks, 350 employees will be laid off by the company. However, they made it quite clear that employees working at the cafe are not included in this number. The memo sent to Starbucks employees have revealed that employees will be laid off from areas including product, creative, marketing, store development as well as technology. This memo was issued to employees by Kevin Johnson, the Chief Executive of Starbucks. The memo also asserted that move has been made to focus on less number of priorities and give more attention & focus to teams working patterns.

        Earlier in September, a memo was sent to Starbucks employees that there will be some structural changes in the company. It was actually a warning to inform employees about potential lay off in the coming days. The company is looking to give more attention to serving its customers so that they can increase sales. The mobile app of Starbucks has been opened for everyone, whereas earlier it was only for premium customers. This move has opened the digital ways for 4 million customers. They want to shift their focus from administrative tasks to customer services to improve customer visits, and they are also planning to open more stores on drive ways. The recent changes are proving well for the company, but to get in more customers remains the most significant challenge for them to overcome (Jargon 2018)

Reference Marketing Strategy

Jargon, Julie. 2018. Starbucks to Lay Off 5% of Corporate Workforce. Accessed November 13, 2018. https://www.wsj.com/articles/starbucks-to-lay-off-5-of-corporate-workforce-1542130200.