SEATTLE, WA — In an effort to revive its brand, Starbucks said it will change its corporate setup and make layoffs. Bloomberg News reported the announcement this week comes as the coffee chain suffers from “stagnant sales.”
In a memo to employees obtained by Bloomberg News, CEO Kevin Johnson said the company “must increase the velocity of innovation that is relevant to our customers, inspires our partners, and is meaningful to our business”
“The leadership and organizational changes will begin this week and carry on into November,” Bloomberg News reported.
The news site said the Seattle-based company has roughly 10,000 employees in the U.S.
Earlier this year, Johnson blamed declining sales on the people wanting to live healthier lives, according to Newsweek.
“To combat the loss, Starbucks said it will develop lower-sugar drinks to hopefully revive growth. Some of its healthiest and most popular drinks are its teas and brewed coffees,” Newsweek reported.
The company also received criticism after two black men were arrested inside a Philadelphia Starbucks for allegedly trespassing. The incident prompted the company to hold a nationwide “bias training” that forced a brief closure of all the stores.
Read the full Bloomberg News story here.
–Photo by Justin Sullivan/Getty Images
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