US Starbucks Expands Stores and Cuts Staff "Orders Always Backed Up"

Staff Numbers Decrease for 2 Consecutive Years
"Serious Workforce Shortage Issue"

American coffee chain Starbucks has reduced its workforce by 8% recently, despite opening hundreds of new stores. Employees cite labor shortages as their biggest complaint.

On the 20th (local time), Starbucks announced through a public disclosure that the total number of employees in the United States (as of September 29) decreased from 228,000 last year to 211,000. Among them, 201,000 were store employees, marking an 8% decrease compared to 219,000 the previous year. Starbucks has reduced its workforce for two consecutive years following last year.

According to Bloomberg News, an internal Starbucks survey conducted in April identified labor shortages as the most common complaint. One employee lamented, “There are not enough staff, so beverage and food orders are always delayed.” The union membership rate among Starbucks employees is increasing. According to the disclosure, Starbucks union membership rose from 3.6% last year to 5%. Starbucks employees first formed a union in 2021 to address poor working conditions and other issues.

However, Starbucks explained that it is accurately adjusting staffing standards according to the needs of each store. Additionally, it stated that employees’ average weekly working hours have increased, resulting in higher income for employees.

Starbucks is experiencing sluggish sales in its largest overseas market, China, due to intensified competition after COVID-19, and a boycott movement centered in the Middle East. As a result, Laxman Narasimhan, the CEO who led Starbucks since March last year, stepped down taking responsibility for the poor performance.

Since August, the new head of Starbucks, Nicole, CEO of the US fast-food chain Chipotle Mexican Grill, has indicated a major organizational overhaul including simplifying the complex menu, improving the pricing system, and enhancing the mobile ordering system.