Get Woke, Go Broke: Starbucks Plans 'Significant Changes' Due to 'Stagnant Sales'

Starbucks Corp. is planning an organizational shake-up, including corporate layoffs that will start at top levels, as the coffee chain tries to reverse stagnant sales and rekindle investors’ interest.

“We must increase the velocity of innovation that is relevant to our customers, inspires our partners, and is meaningful to our business,” Chief Executive Officer Kevin Johnson said in a memo to employees viewed by Bloomberg News. “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 will begin this week and carry on into November, Johnson said. He sent the email after the company held its quarterly town hall meeting in Seattle last week. Starbucks employed about 10,000 in U.S. support facilities, store development, and roasting, manufacturing, warehousing and distribution operations, as of Oct. 1, 2017.