What are you hearing about the mass layoffs in the corporate and regional offices?

One e-mailer calls it "a bloodbath." What's going on? How many were let go? From what departments? Details, please -- and let's hear stories from those who were let go. UPDATE: Seattle Times reports 100 people were let go.

Comments

[Trent]

Isn't this really old news? The bloodbath happened a long time ago.

[deeper]

nope, this is a new wave. different that "black thursday"

[Jon SBUX FORUM]

Can you give more detail on what happened? I don't see any news about this.

[waltie]

In the past month or so, at least three managers in my surrounding districts vanished. "No longer with the company" was the reason we were given.

But, I'm not scared. These weren't very good managers.

[Trent]

Waltie, if they were bad managers, they were let go for that. It wasn't about cost cutting as every store needs an SM.

[Trent]

Well whatever happened, Starbucks did an excellent job keeping it under wraps. There's not a single story on Google News about layoffs. Everything is about the free-wifi roll out

[CouvBux]

Does this have anything to do with my Area's "overage" of ASM's? The "overage" that caused my district manager to go back on my ASM deal and put me back as a SS doing and ASM's work? Enlighten me please.

[13yearcustomer]

Couldn't this be a hoax? Disgruntled employees usually alert the media themselves.

[Trent]

Couvbox:

You are talking about the new ASM standard of having no more than 2 ASMS per store. Yes, this is definitely impacting the succession rate. I know that what some areas are doing are replacing an outgoing ASM with an ASM from a 3 ASM store. You'll never see Starbucks layoff an ASM because of this standard. Our company is better than that. It's not our culture.

I do know that in very exceptional circumstances, RDOs are approving that certain high volume stores are still 3 ASM.

[Artemis]

Hardly a bloodbath. Approximately 25 positions at the SSC and another 100 in the field, all in store development as far as I know.

[Trent]

Artemis, how are you hearing about this?

I guess these were the people that were given a "you're on thin ice" warning when the 1st layoffs happened.

[espressoblend]

I'm happy to hear about the layoffs. Starbucks seems to have a lot of overhead due to too many stores, too much staff, etc.

This would certainly lower operational expense, which will make the bottom line far more attractive to stockholders.

Yeah, it'll hurt the few that got laid off, but it'll be for the good of everyone else.

[smalltownsm]

I had a hard time understanding all the details, but there was a note on the portal this afternoon. It is being called a restructering within the new store development team. If I remember right, it was about 25 people at the scc, and about 100 from locations around the country.
Less growth, means less for work for people to do. These layoffs are still not at the store level. There are always a few mangers that need to gom but the train has left the station and some SM's just were not on it.
I know that they changed the threshold on ASM's. No one was being eliminated, but some potential ASM's were put on hold. It used to be $17000 a week to earn an ASM, they raised it to $18000.
Anyway, about the layoffs, just check the portal.

[deeper]

i understand that multiple regional offices will be closed. trent is correct - mostly store development employees will take the brunt of the layoffs. no surprise.

[()]

Starbucks Global Development team.

[truth]

No one has yet explained all the veeps leaving ssc.

Lets hear it.

[carol]

I'm happy to hear about the layoffs.

Yeah, we're sure you are happy about it. Someone losing their job so you can profit, seems right up your alley esspressoblend.

[layed off]

I was one of the people layed off yesterday, June 4th. This was round two. Round One was back in February. We were told that our job was elminated...it happened in the support offices across the country. I do not know how many people it affected this time. A lot of the people let go were from Store Development----they renovate and build new stores. Store level lay offs are coming soon. Guess I will enjoy my summer now.

[Coffeeiscool]

None of the stores in our district really need an ASM, yet four of them exist. I wouldn't be suprised to see them or a few select low-quality managers go before Summer's out.

Also, has anyone taken a good look at the DM role? Maybe some room there for change.

[asmgirl]

I got a call yesterday that said 200 jobs nationwide. SMs, support staff and construction, mainly. Construction I can see, if we're slowing growth across the US, but support staff and SMs? We lost some amazing people in my region in February and it's a little scary to me. Has everybody in Seattle gotten too rattled by the stock market and the economy to remember about our first guiding principle? Respect. Dignity. Some of the support staff we lost in February had been great SMs who got promoted into specialty roles and they weren't even offered store level jobs. They were just let go.How do you reconcile this behavior?

[truth]

People have called me a hater here, but I've consistently warned partners that a) more cuts are coming, and b) you need to diversify if all of your 401k is in sbux shares.

Betting with your job AND your money is not prudent.

When on Monday the CFO calls 2008 a year to right-size the company, you MUST acknowledge that they aren't done yet.

Otherwise, why would all the good people be leaving SSC?

[Raj]

I am in southern California and we are hiring.
partners, shifts, ASM, SM and DM - so lay offs here

[Summer Vacation]

I was let go yesterday as well. The cuts were in Store Dev. We all knew layoffs would happen when they announced that new store growth would be held to 250 stores for the next few years. No mystery what that meant. Positions were "reorganized" from the top down. Where the surprise came was who was let go and who stayed behind. It seems like perhaps those with the lower salaries remained. I don't know that those still working there feel that they are the "lucky" ones.

I was with Sbux for a long time and it was probably time to move on. I'm going to enjoy my summer vacation. It's been years since I had one.

[lslander]

bump what Summer Vacation said. Store Dev Partners knew the winds of change were sweeping our way for months. We ran at 1,200 new US stores a year then downshifted to about 500 US for FY08. Those stores were in the pipeline when the annoucement was made months ago. SBUX plans 250 a year projected for FY09 (October 2008 to September 2009) and most if not all of those are locked-up. So, management had little choice than to again transition some of us from Partners ot Customers. With some luck and a better economy the company will shine again. But, for the next few years they do not need a team of real estate professionals acquiring sites at the rate of 3 or 4 a day. Good-bye SBUX and thanks for the ride, it certainly was challenging and very interesting along the way.

[outsider]

Why hasn't this been reported to the media yet?

[truth]

outsider- We've been through this before. The local media is embargoing bad news on sbux. It makes their jobs too difficult. (If it local dotcom lays off a handful of people you hear about it immediately.)

Same was true with the Peltz thing. Only one Seattle paper even covered it, and that was buried in the bus briefs.

There's a whole world going on out there that the media doesn't cover. You need to start reading the tea leaves (pun intended) rather than wait for the press coverage.

[P.R.I.D.E.]

Truth, I'd have to disagree on your point. In fact, I would say that the media has used Starbucks as it's "Britney Spears" of front page/top-of-the-hour newcasts now for the past year or two. Sure, they could be reporting on the atrocities in Darfur, but they know the Starbucks logos gets newswatchers/readers to tune in.

In fact, if I had the opporutnity and time to run a comparative analysis, I would conclude that there has been MORE coverage of Starbucks in the past year, than ever before.

The cause of this, is simple. More readership/viewership.

As well, the February layoffs resulted in mass media reports, so your speculation of media sheltering Starbucks is just unfounded.

On the Peltz issue, many of us don't see this as being significant, I think in fact that you are one of the few who keeps perpetuating that we should see this as significant. So, it makes sense (again) why this wouldn't be lambasted in the media.

[truth]

Actually, pride, the webmaster here 'called BS' on my assertion that the Peltz thing would get swept under the table on the day the news broke.

He, too, swore it would get covered by the Seattle media. It barely did.

[JavaJake]

Do you mean the massive layoffs of a .0001 of the workforce? The 50 people. Really sounds mass to me. LOL. It is a bloodbath if you were one of those less fortunate who was not doing his/her job and thus, got axed for being redundant. Survival of the fittest. It happens in all companies.

[Jon SBUX FORUM]

Sorry for those of you who got laid off. While you guys say that it was coming, I'm still surprised that you are taking it so well.

[caffeinegal]

WOW - 200 jobs nation wide - that is a pimple on a company with 150,000 employees. What is the big deal?

[Cali ASM]

Also, has anyone taken a good look at the DM role? Maybe some room there for change.

AGREED!!!

[SoCalRocks!]

I think its always a good idea to reflect on current roles, etc. but my hope is that we realize, for as difficult as it has been to deal with some of the recent change, the DM role is the most impacted beyond the store. They are having to turn right, then turn left, all the while filtering communication and holding the line for our partners. I know there are some bad beans out there in the DM role, but that holds true for any role here at Sbux.

[Bubka Penis]

All these layoffs. This is the second time in a couple of months. I don't believe the baristas behind the counter realize how many people are counting on them. When they continue to not smile or give bad service they really don't realize the negative effect it is having on people that have to go home and then tell their family they are out of a job.

[jack]

I'd have to disagree with Bubka. We (baristas) are counting on the ones above us to give us a good quality product and product innovation. I'd have to say, things I've seen hasn't been what I'd expect. Even my new store quality (built 2 years ago) isn't up to my standards. So, I wouldn't pass this all on baristas.

[Drive, He Said]

Why don't all those people laid off just get jobs as baristas? The company is always in need of baristas.

[former partner]

Some of you people obviously have no idea what "partner" is supposed to mean. I was "restructured" in the first wave. Survival of the fittest? Many of the people this has happened to gave their lives to the company. Respect? Dignity? Just words in the new regime....

[SBUX SUX]

A lot of people laid off this second round busted their ass for the company. Many individuals were obviously over qualified for their positions. In hindsight, i believe those people are better off working for a more nationally respected company. SBUX sold the sonics, it's no surprise they'd sell out their own partners. WAY TO GO STARBUCKS! bunch of corporate snakes.

[truth]

It's disappointing to see the lack of compassion for the people who were laid off.

These were white-collar professionals who were key to the long-term growth of the company. They deserve some praise.

[Stevo]

I was sort of looking for a turnaround in policy so they could get their mojo back but the execs seem to have panicked in the face of a hostile bid and fired most of the crew who were brought back to help do the job. I heard though the grapevine that Starbucks is losing about 60,000 customers a day to McDonalds who serve just about the same 10 cent cup of latte for a buck while Starbucks gets three bucks for latte that tastes like old socks on occasion as they don't even teach new barristas how to heat milk right.

[Darleen]

Yeah STEVO, we all know how reliable the grapevine is. Maybe do some research before you spew off about something that is not true.60,000 customers a day. Where are some of you people from mars? Let's be a bit more realistic, a bit less reactive and maybe we can get to the truth on here for once. See you at McDonald's STEVO.

[truth]

MCD hasn't even fully launched their coffee initiative yet.

The cheerleaders here need to do less yelling and a little more backing up with facts and data.

And what about the brain drain at SSC?

Why won't anyone talk about all the veeps leaving in the past few months?

[pat nerr]

Truth... Cuz they don't know anything about the departures and those sent packing have been giving "going away" money...

[Bubka Penis]

Summer Vacation- I am extremely sorry to hear that you lost your job. Very Sorry.

Jack-The economy plays 95% accountability for the layoffs. The other 5% comes from you. That poor service you gave today cost some one their job. Open your eyes. Your position helps create opportunities for many people and when you give the poor service you do it now costs nice peolpe like Summer vacation their job. thanks alot Jack. For you SM's out there you need to realize that some of you are also costing people their jobs.

[Bubka Penis]

Summer Vacation- I am extremely sorry to hear that you lost your job. Very Sorry.

Jack-The economy plays 95% accountability for the layoffs. The other 5% comes from you. That poor service you gave today cost some one their job. Open your eyes. Your position helps create opportunities for many people and when you give the poor service you do it now costs nice peolpe like Summer vacation their job. thanks alot Jack. For you SM's out there you need to realize that some of you are also costing people their jobs.

[DM]

My DM is a moron. Just thought you should know.

[Lynette]

Truth, could you please tell me what 'SSC' is? Thanks.

[Melody]

Lynette, that's an easy one:

Starbucks Support Center - It's the corporate headquarters in Seattle, and that's what Starbucks calls it.

If you look on mystarbucksidea.com ("Ideas In Action" link) you see the latest blog is about store development. It's sort of interesting.

Good luck to those who were layed off.

Melody

[Jack]

Ouch. Bubka. The other 5 percent is from my bad service? I always try to be 100 percent and give the best possible service to each and every customer. It's definately not from me. If starbucks R&D was worth the shit, we wouldn't have this problem. I've worked for this company for many years and have seen nothing but complete BS from above. Ovens in stores(with fastfood like design), no product innovation, and cutting labor in stores. Our new stores are cookie-cutter in design. In fact, my less than 2 year old store is getting a redesign with new furniture because someone above me did a pisspoor job in opening the stores in my area. Starbucks product innovation has been stagnant with the same holiday promotion year after year and the same blends of coffee and fraps and taking away syrups people actually wanted such as valencia and adding sugar-free mocha(which is now discontinued). And bringing out new products that are just derivations of the same product, such as CBB light. If you drank the same coffee and tea for 5 years, wouldn't you be tired of it, especially if you can't afford it anymore. Give me a break.

And you think the economy doesn't play a role in baristas' lives? We're working harder than ever in Starbucks history and getting paid less(McDonalds down the street pays more starting out). And yes, bearing the weight of the company on our shoulders so people above us do not get laid off. True, there are always some bad beans out there.

[Darleen]

Pat Nerr,
We were sent information on the lay offs.

Bubka Penis,
The people who were let go were in store development. If we are not going to be opening stores at the rate we once were why would the company need to employ the same amount of people for that position. Yeah it sucks big time when someone loses their job. I do feel for these people, I truly do. You can take that however you'd like. The folks who were let go were offered EAP assistance as well as job sourcing help. So while they were let go they weren't just shown the door and kicked in the pants. Also, for you to blame a barista for this decision is extremely harsh and over the top. You guys are really starting to wear me out with the moronic dribble lately. If there is no new store accelerated growth there is no need for the same amount of people on the team. I read the action item on the portal, this was not an easy decision, yet it was one that had to be made. Easy for the haters to say that it was done maliciously and without warning, fits right into your little aganda, but sorry, that's not the case as shown in evidence by summer vacation and lslander. They knew this was coming, knew it was inevitable and do not feel such animosity as you guys do, all due to the bitterness you seem to hold for this company. Yeah, I'll still be a cheerleader for this company TRUTH, while you and the other haters continue to bash what I respect. Just try to focus on facts though, the dribble is getting tiring.....