Starbucks Heeds Elon Musk and Makes a Drastic Shift in the United States

Starbucks is once again at the center of controversy. The coffee chain has announced the layoff of 1,100 corporate employees, marking the largest cut in its history. However, what has caused the most outrage is the way the company has decided to communicate it.

According to Financial Times, Starbucks has asked its office employees to work remotely this week. The reason behind this measure is that the layoffs will be notified via an email sent by a senior executive. This strategy avoids face-to-face dismissals and has been harshly criticized on social media and by the workers themselves.

"Greater Efficiency" at the Expense of Employees

Starbucks CEO, Brian Niccol, has justified the cuts by stating that the company needs to simplify its structure, through a statement addressed to employees. In it, he stated: "Our intention is to operate more efficiently, increase accountability, reduce complexity, and drive better integration."

Like Niccol, Elon Musk has been particularly blunt about remote work, calling it "crap" and asserting that it is a "morally wrong" practice. Musk has argued on several occasions that workers are more productive when they are in the office. However, in this case, Starbucks is using remote work to facilitate layoffs without facing employees directly.

Starbucks has 16,000 employees worldwide, of which 10,000 are in the United States. The 1,100 scheduled layoffs will only affect office workers. Employees in cafes, warehouses, and roasteries are not included in this measure.

Brian Niccol, a CEO at the Center of Criticism

Brian Niccol took over the leadership of Starbucks last September with the mission of improving sales, with an annual salary of $113M. Even so, Starbucks recorded a 4% decrease in the last quarter, according to Reuters, which has led the company to take drastic measures. In addition to not reversing the losses as promised, the CEO's lifestyle has been another point of conflict.

Niccol, who received $96M in compensation for his first four months at the company, is not required to live in Seattle, where Starbucks's headquarters is located. Employees have denounced the inconsistency between the demands Brian Niccol places on them and his extravagances. Niccol travels by private jet between his beach house and the office, while requiring workers to return to their posts at least three days a week.

Starbucks and Its Fight Against Unionism

Starbucks's relationship with its employees has been tense in recent years. More than 500 stores in the United States have managed to unionize, representing over 10,500 workers. The union Starbucks Workers United has long been demanding better working conditions, but the company has made negotiations difficult.

At the end of 2024, talks about the first union contract broke down, leading workers to strike during Christmas. The way Starbucks is executing these layoffs has further fueled criticism of its management. Meanwhile, employees await an email that could leave them jobless, their CEO continues to enjoy the opulent privileges of his position.