Starbucks To Change Organizational Structure

(RTTNews) - Starbucks is reportedly planning to make "significant changes" to its organizational structure, including corporate layoffs at top levels.

According to a Bloomberg report, citing an internal memo sent to employees by CEO Kevin Johnson, Starbucks is planning an organizational shake-up, including corporate layoffs that will start at top levels, as the coffee chain tries to improve poor sales.

"We must increase the velocity of innovation that is relevant to our customers, inspires our partners, and is meaningful to our business," Johnson said in the memo. "To accomplish this, we are going to make some significant changes to how we work as leaders in all areas of the company."

The leadership and organizational changes are set to begin this week and continue on into November.

Starbucks employed about 10,000 in U.S. support facilities, store development, and roasting, manufacturing, warehousing and distribution operations, as of October 1, 2017.

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

Starbucks, the largest coffee retailer in the world, has been struggling with weak sales in the U.S. for several quarters. The coffee retailer had close a number of underperforming company-owned cafes. Starbucks, which usually closes about 50 stores annually, 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.