Breaking News
More () »

Starbucks planning layoffs, 'significant changes' to company structure

The coffee chain also announced that 150 locations would close during the fiscal year.
The Starbucks logo it's seen outside a store on May 29, 2018 in Philadelphia. (Photo credit should read KENA BETANCUR/AFP/Getty Images)

Starbucks is planning to make "significant changes" to its organizational structure, according to a letter sent to employees by CEO Kevin Johnson.

The restructuring, which could include corporate layoffs, is an attempt to combat the popular coffee retailer's falling sales and reignite investors’ interest, Bloomberg reported Monday.

“We must increase the velocity of innovation that is relevant to our customers, inspires our partners, and is meaningful to our business,” Johnson said in a memo sent after last week's town hall seen by USA TODAY. “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 shifts and organizational changes will begin this week and continue into mid-November, according to the letter.

The coffee giant has been on a mission to ramp up its growth and revenue and increase innovation in an evolving retail market. Starbucks announced earlier this year that it would accelerate the rate at which it is closing underperforming shops in areas that are already packed with them. The Seattle-based chain usually closes about 50 locations per year but, in June, announced that 150 locations would close during this fiscal year.

In July, the company reported third-quarter earnings and a net revenue of $6.3 billion, up 11 percent from the previous year.

Starbucks declined to comment.

Contributing: Zlati Meyer, USA TODAY

Before You Leave, Check This Out