Business
Starbucks Cuts Jobs in London and Hong Kong as Part of Restructuring Plan
Starbucks has cut corporate jobs in its London and Hong Kong offices as part of a restructuring plan. The company is giving third-party partners greater oversight of international stores while continuing its goal of expanding its global store network.
Starbucks is cutting corporate staff in London and Hong Kong as part of its restructuring plan to cut costs and restructure how it runs its international business. The company has been restructuring its corporate teams to eliminate layers of redundant management and coordination roles.
London and Hong Kong mass layoffs
Starbucks, for its part, slashed about 20% of headcount in its Hong Kong office which oversees business throughout the Asia-Pacific region excluding China and Japan. It was impacting around 60 job roles.
The firm also cut around 120 roles in London, which is home to its Europe, Middle East and Africa headquarters. Starbucks had no comment beyond its global restructuring announcement in May, when it announced another round of U.S. job cuts and said it was evaluating its international corporate teams.
Greater Role for International Licensees
Abroad, Starbucks is handing more responsibility for operating some of its stores to third-party licensees.
The company is also stepping back from running many of its international sites directly, and it is giving licensees more control over the business. That method, Starbucks said, will help save time and resources for its stores owned by the company, which are primarily in the U.S.
During the reorganisation, a small number of job functions are being shifted to licensees or corporate teams in offices such as Seattle that service multiple regions. It is unclear how many roles will be retained at the London office in the wake of the shake-up.
International Expansion Plans Continue
Starbucks said it aims to double its worldwide store footprint, to roughly 40,000 locations over the next decade mainly via third-party partners.
The firm last year was also an indirect partner for a venture in China. Starbucks is also exploring options over its Japan operations, Bloomberg News reported separately.
The company said sales growth in international business was 3% for the quarterly period which ended on March 29, marking an eighth quarter of growth and third consecutive quarter of overall company growth.
FAQs
What Hong Kong payroll cuts dented the cut?
About 60 staff (approximately 20%) were laid off.
How many jobs were cut in London?
Starbucks cut around 120 roles at its London office.
What is Starbucks's target number of international stores?
This will help the group increase by around 40,000 locations its approximate double total international store count.
Source: Business Times
Follow Inspirepreneur Magazine for daily global business news.