Starbucks cuts US retail workforce by 8% despite new store openings
Global coffee house chain Starbucks reduced its retail workforce in the US by 8% during its latest fiscal year, despite the opening of several new locations, as reported by Bloomberg.
As of 29 September 2024, the company's total number of employees in the US stood at 211,000, a decline from 228,000 at the same time in 2023, as indicated in a regulatory filing released on 20 November 2024.
201,000 individuals are employed in company-operated stores - an 8% reduction from 219,000 in 2023.
The remaining employees work in corporate support, store development, roasting, manufacturing, warehousing and distribution.
The latest decline marks the second consecutive year of a decrease in the US retail workforce.
Around 5% of Starbucks employees, known as partners, in US company-operated stores are represented by unions. In September 2023, Starbucks reiterated its intention to maintain a positive relationship with the Workers United union as it continues discussions regarding collective bargaining agreements.
As of the end of the fiscal year 2024 (FY24), the demographic composition of its US workforce was 70.9% female and 28.4% male.
More than 51.9% of retail staff and more than 37.9% of corporate positions were drawn from diverse backgrounds via inclusive recruitment practices.
During FY24, Starbucks opened a net total of 513 company-operated stores, increasing its overall count to 10,158.
Globally, Starbucks employed 150,000 people outside the US, with 144,000 working in company-operated stores and the rest in regional support roles.
In its filing, Starbucks stated: “We are expanding workforce diversity to bring new perspectives and experiences that improve our business and workplace. To do this, we reach a broader pool of candidates and talent by prioritising inclusivity in our recruitment practices, in partner engagement, and by continuing to foster inclusive leadership.”
Starbucks is facing scrutiny due to a decline in sales that resulted in the unexpected departure of chief executive officer Laxman Narasimhan.
The company appointed Brian Niccol as chairman and chief executive officer in August 2024.
In its filing, Starbucks reported revenue growth of 2% in the North American segment and US market in fiscal 2024 compared to fiscal 2023.
"Starbucks cuts US retail workforce by 8% despite new store openings " was originally created and published by Retail Insight Network, a GlobalData owned brand.
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