(Reuters) - Starbucks (NASDAQ:SBUX) CEO Brian Niccol said on Friday the coffee giant will cut jobs to optimize its support teams as part of the company's ongoing turnaround efforts.
The details of the job cuts, to be announced by early March, will not affect the company's in-store teams or the investments it makes in store hours, he added.
Niccol, the former Chipotle Mexican Grill (NYSE:CMG) head, who is four months into his new role at Starbucks has set forth a raft of measures to improve the coffee chain's business, which took a hit from increased competition and weakening demand in the U.S. and China.
"Our size and structure can slow us down, with too many layers, managers of small teams and roles focused primarily on coordinating work," Niccol said in a statement, adding that he will examine the role, structure and size of support teams globally.
The company suspended forecast for its fiscal year 2025 in October and laid out plans to overhaul its U.S. locations, adding more comfortable seating, ceramic mugs and a coffee-condiment bar, with customer wait times of less than four minutes.
On Thursday, Starbucks' lead independent director on its board, Mellody Hobson, said she would retire after nearly two decades with the company.