What are you hearing about Wednesday's layoffs?

Were you pink slipped today? Tell your story here. || READ THE UPDATE: Starbucks tells 1,370 workers that their jobs are being eliminated. || Read the memo from Starbucks human resources. || Jump to the sixth page of comments.

Comments

[buxless]

anyone know what happened in ny?

[Me]

Thank you, Bean Counter!

[Torontodude]

Re: Canadian Labour Law

I think Bean Counter is correct. In Canada, employers generally may not unilateraly change employment conditions. There must be mutual consent. If the employee declines the change in conditions, the employment relationship continues under the old terms. Lawyers often advise companies to get consent in writing and offer a raise as an inducement.

But many companies get it wrong. Citing economic necessity, they raise the bar without getting consent. They then fire employees for failing to meet the new standards. The companies are then surprised when their lawyers -- who have been brought in much too late -- advise them to make a quick and large settlement. The companies are astounded and outraged. They had no idea employees had so many rights.

None of this prevents layoffs. In that case, provincial laws dictate how much severance must be paid. I'm not sure of the exact formula -- but for some reason "two weeks pay, plus an additional week for each year of service" sticks in my mind.

Disclaimer: I am not a lawyer. And I do not even play one on the Internet. It's possible some of what I just wrote might not apply to some or all Starbucks workers because they might not be considered full time.

But I'd guess Starbucks would have to offer a choice of severance or agreeing to new conditions. It couldn't fire employees without compensation due to lack of availability caused by the new scheduling procedure.

[Sneaky]

@PAMGR

You are not incorrect but there is more to the story.

ASM's don't always finish their modules in 8 months. It is a guideline not a requirement. So a good performer could still be working on it for more than a year or two.

The DM's in So Cal were given the directive 2 years ago to re-assess those ASM's that had completed them but were never going to be considered promotable based on performance. Rather than hold them ion a role forever, they were to be offered demotions or asked to resign (no severance). If they wouldn't the DM's were to performance manage them out based on not performing in their current role. Not enough DM's had the strength to do this and so quite a few remained.

The much bigger problem is, Sbux kept hiring, developing, promoting, etc into the ASM role as if the company was still growing and SM positons would still be abundant. Suddenly all those promotions stopped and there was a very large population of ASm's with no where to go and the belief that an SM role was "owed" to them (not their fault it was the culture Sbux developed for years).

Then business dropped into the toilet and the threshold for earning an ASM was raised several times.

All this has been a recipe for certain doom for the ASM role overall. So, very sad and very upsetting for the unlucky that are now out in a difficult job market - but not the least bit surprising.

[Sneaky]

Just heard from a DM in Licensed Stores on the West Coast. They are on a conference call right now learning about "organizational changes". Maybe the 2 year old rumor of consolidation of RD's and DM's between Company Operated and Licensed Stores is finally happening.

[grievingasm]

I was pink slipped today also. I had yesterday off and didn't know about the announcement, but I knew when I saw the look on my SM's and DM's faces when I came in for my shift today. At least I still have vacation that I'm using for my 2 week notice so I don't forfeit it (I actually have more, but don't have time to use it), so I have the next 5 weeks paid, but it still hurts. I was with the company for over 4 years.

[Thankful but pensive]

Not all ASM's were laid off today. I am an ASM from NJ, and I was not laid off. Several friends of mine were though, and I am not looking foreward to what the future holds.

[Shift Supervisor]

Please let me know if anyone from the Southern California area is being hit. Also has anyone heard of a list of stores being closed yet?

[Venti Disappointment]

My bf was laid off at corporate in Seattle. He wasn't allowed to send a good-bye e-mail to coworkers, andhe was followed out of the building. For all the PR Starbucks pushes, treating former employees like miscreants instead of partners smacks of hypocrisy and lip-service.

I have little respect for Howard, if any. When he should have been focusing on coffee and tea service, he encouraged the sale of protein drinks and "juice" smoothies. And how many of us have witnessed unsold amounts of unnecessary merchandise in stores? This is how a CEO saves a company?

I hope my bf sells his stock in Starbucks this week. In fact, I hope every former employee sells their stock. If the actions witnessed by few and experienced by many are how Starbucks rewards loyalties and contributions, then let them know how it feels to get dumped.

[FormerSBUXMgr]

Does anyone know if by accepting severance, you will forfeit your right to get unemployment benefits?

Worth checking into before you sign your soul away for 3 weeks of pay.

[spence]

Good Luck to everyone who lost their jobs. Too sad.

[buxWife]

Husband was a cut ASM today. This is definitely not based on performance - he was just awarded ASM of the Year for the Region. He's been moved around to different stores this year to help fix them (at the request of each manager), and even covered a store alone for 3 months while a mgr was out for maternity. So... logic of keeping loyal, strong employees doesn't really seem to be at the forefront here.

[SBUX Alum Bill]

I've been through rounds of layoffs at SBUX and other companies, and SBUX is by far the most mean spirited and coldest of the bunch. It really runs counter to the image that they've created.

[Pat Nerr]

FormerSBUXMgr-

The answer to your question is no. That's against the law. If you are being laid off they shouldn't be contesting your Unemployment Benefits... Ask those questions in your exit interview/lay off notice

[JJ]

Well, I was eliminated about 6 months ago and I can say with great certainty it was for the better! Yes it was a job, one I got trapped in, I was a ss looking into asm, glad that never came about!

I'm now happily self employed looking into schooling options, and looking to a far brighter, (much less sbuxxi green) healthier life!

As for the future of Sbux, I think it'll go through another layoff and even round of store closings, it'll stabilize and it'll become more like working at McDonald's it'll go back to efficiency, and stark empty thank yous. At I doubt greatly that profit will ever be as strong as it was just a year ago.

Thanks Mr. Bush

[SM]

I am so sorry to everyone. I wish I could have saved my ASM's job. It nearly broke my heart today to meet with her and my DM. I have terminated many, many people in my 20+ year career, but this one was the hardest and least deserved of all.

I wish all of you only the best of luck and hope that good things are in your future, starting tomorrow. I have been there and I can empathize with your pain but know that you will come out on the other end a stronger person and maybe even more gainfully employed, I truly hope.

I feel the fun has been stolen from our company by those that have little understanding of our business needs in tough times, and you helped us all get through many of these challenges. Useful position or not, I wish things could be different for each and every one of you.

Never give up. Resolve yourself and rise above the things that have happened at Sbux in recent times. The former partners here are valuable in the outside world. More than you realize, you are a valuable commodity in the market. Actually, you are about the only thing that is valuable about our company in any given market right now.

I am so, so sorry.

[indyhipo]

To Melody:

I live in Indianapolis and am in and out of the Indianapolis Regional Office. The office was partially rented out to another business because of all the space left over after the several lay-offs. There has been no discussion of closing the office here. Any thoughts?

[goldcoastgirl]

you do not waive the right to collect unemployment by accepting severance unless you signed something agreeing to it.

[Sneaky]

OK, just got the news - the Regional Licensed Manager role (the RD for licesned stores) was eliminated. The Licensed Store DM's all resport to Company Operated RD's now.

As far as So Cal is concerned I heard that most of the ASM's in the OC area were eliminated but not in Long Beach. Also a few in the Los Angeles beach cities.

[FROM]

Do not buy the bs about under performance no matter what position you rank. Starbucks is weeding out people from baristas all the way to to the top. Suggestion: git rid of Howard and get some experienced ceo that can do the job right.

[Me]

buxWife, they don't care about performance. At my store they will have three people with hardly any skills but being available all day. This alone qualifies them, nothing else. According to the way they work it is no wonder they don't have another job or school to go to. So Starbucks will get stuck with a lot of these people while they let a lot of good hard working and committed people go. The only good thing about this is, the good ones are out to find better jobs and don't have to compete with the underperformers for these scarce jobs yet, because they are still all employed at Starbucks...

Oh and all you SMs out there crying tears for their ASMs, don't cry too much. A bunch of you will go next, this is when they will have low volume stores being run by a neighboring stores SM.

Unfortunately all this won't save Starbucks, because customers see what is going on and come less and less.

And don't forget all these partners not coming in frequently to spent their Starbucks Dollars any more.

I agree with whoever said Starbucks is one of the worst companies to deal with layoffs. Very unprofessional. Like a lot of things they did recently.

Onward,
until you hit the wall...

[curious1]

Partners not spending their money is a really good point. I am constantly getting drinks for family members and buying all my gifts here...it adds up to hundreds a month. No more.

[cali-asm]

I think there is a misconception about what is intended by under performance.

I am an asm who was not laid off today. and my dm, who has always been honest and up front, told me they are transitioning away from "career asms" and so it was more about who, performance wise, showed potential to be a great store manager at some point in the relatively near future.

It was not about who is a great ASM but instead about who is going to be ready to move up with the company.

the definition of under performance changes when stakes are raised. They didn't necessarily tell us they were raising them, but I think it's pretty easy to push yourself to constantly be better, and in my experience that has always been what they were looking for.

I'm not saying "hooray" for people loosing their jobs. I'm merely trying to quiet some of the cynics who seem to have their facts horribly wrong.

[I love ladies]

Ok, so here you go. As a store manager you were told at new orleans that we were going to get laptops to keep the MWS open for new employees. 10,000 laptops, why do we need them? we are laying off thousands of people,and we don't even get non-coverage. so what are you going to do now? Your review will go to a 4 point scale on your reivew. so now you don't even get a raise.

[SM]

Me...

I don't think anyone is sad for the ASM's just because they still have a job. It is just impossible to not feel for others, at least if you have any sense of obligation and humanity.

I am not worried about my job, not because I don't think it could be cut, in fact I would be surprised if some SM's didn't go. I don't worry because it does me no good to feel sorry for myself while others are suffering more.

These ASM's were blind-sided. That is sad. No matter how you slice it. My heart goes out to anyone, in any position, in any company that has little or no idea that this could happen to them. Then when it does, that they never thought about a contingency plan.

I have no delusions. Personally, I believe it is going to get much more painful out there than anyone seems to think.

All I can say is hold on to your hats everyone. We are in for a ride.

Good luck to all of those who have lost or will lose their job in the coming days, weeks and months.

[buxy]

I can't say that anyone should feel blindsided about layoffs in any industry or profession, especially in our luxury retail industry, UNLESS you have absolutely no idea what is going on in the world.

I'm sure that many of the store managers at the 900 (total) we are closing will not be able to fit into other stores as SMs, so it would be logical to state that there will be SM reductions ... unless we've been horribly understaffed on SMs, but considering our previous strategy of having ASMs benched and ready to go I don't think there is a 900 store gap to fit these SMs into ... they certainly wont fit into the ~90 (mostly licensed) stores we are opening this year.

SBUX is doing what it needs to do to survive and that is all about reigning in spending, a lot of what we've done this year has felt like a shot in the foot, but a lot of what we've done has been neccesary and sad.

I JUST received word that I'm safe today/this round ... but come next quarter who knows ... I lost several good coworkers/friends today though..

[S]

There is too much misinformation in this thread, it's hardly worth reading at this point.

--I encourage everyone to carefully read the finance @ yahoo report about the layoffs today. It is accurate and clear.

--Optimal Scheduling does not call for baristas to be "terminated"... so they can't possibly be "wrongfully fired". They're being laid off (separated). If business picks back up and they are still interested they would be eligible for rehire or reinstatement, whichever.

--Those of you who think this isn't still happening are wrong. There were a couple new store openings celebrated in NJ last week.

--As for ASMs, @PAMGR hit the nail on the head. It's considered a "pipeline" position. Any company with less warmth and fuzziness would have separated those 3 yr ASMs long ago.

For those who are disappointed in Starbucks' decisions of late - perhaps you should read more about the turmoil and depression around the rest of the US job market. What choice do they have, really?

[another pa sm]

I know starbucks has always considered the asm role a transitionary role but think of what the term really is....assistant store manager. Shouldn't it be that in busy stores where there is a large staff to manage, and increasingly large demands on the SM that there should be someone who can assist them in managing the store. It seems all other companies with assistant store managers do just that, assist the manager in operating that location and yes the good ones do get promoted when the opprotunity arises. Just because there may not be a store opening nearby for a long while shouldn't mean asm's aren't needed to help in the store they are already in.

[Mike]

I'm an ASM who did not get the axe.

I heard about what was happening halfway through my shift (I'd had an idea based on the number of upcoming layoffs) but I got the call from my DM telling me she'd already downsized the entire district and my job wasn't at risk.

My P&L was one of the best in the region and just yesterday I was told "The only place you're going is up" but I still had a heart attack this morning when the news started coming in.

[SoOverIt]

The Shift Supervisor Position is NOT, I repeat NOT one of the positions being considered for elimination.

FACT.

[sample cup]

All my heart goes out to anyone who loved their company and got let go.

I'll just leave it at that.

[Torontodude]

Re: Optimal Scheduling and Termination

S. argues that employees who find themselves out of work have no rights, since they were not "terminated" and "wrongfully fired", but rather "separated."

I think this may be factually incorrect -- at least in Canada.
If optimal scheduling is implemented, you may be able to claim compensation even if you quit.

From the website of a Toronto employment lawyer:
"As a general rule, employees who quit their employment are not entitled to compensation from their employer. However the exception to this general rule is where an employee quits because their employer unilaterally and fundamentally changed the conditions of employment. The law classifies such situations as a ‘constructive dismissal’. In other words, the employer did not directly dismiss the employee but the employer changed the job so completely that the employment contract was effectively at an end.
This distinction is significant, because if an employee voluntarily quits, their employer would not be legally obliged (unless agreed to otherwise between the parties) to pay the employee compensation. If, however, the employee is constructively dismissed, the effect is the same as if the employer had wrongfully dismissed the employee (i.e. not provided reasonable notice or just cause). With constructive dismissal, the employee is, therefore, entitled to the same notice period and or compensation in lieu of notice as if they had been wrongfully dismissed.

Examples of some fundamental changes to the conditions of employment that may be classified as a constructive dismissal are: substantial reduction in pay; reduction in hours; change in duties and responsibilities; and requirements that the employee relocates to another city (provided this was never part of the employment contract). Minor incidental changes will generally not be enough to sustain a constructive dismissal claim.

The concept of constructive dismissal has emerged in recognition of the inequality in bargaining power in the employment relationship. If not for constructive dismissal, employers could simply force employees to quit in an effort to avoid having to give reasonable notice or provide compensation in lieu of notice.

The burden is on the employee to prove that they have been constructively dismissed. The employee needs to prove that the employer made a fundamental change and that this change was made unilaterally. "

Again, I'm not a lawyer. And I may have missed something crucial that changes everything (eg. whether part-time status affects your rights.) "Me" wrote earlier that she was a student. I think a visit to a university legal aide clinic might be in order if there are problems.

[lattegal]

Just hate the thought of people losing their jobs. But seriously...if a SM can't manage a store without an ASM then they need to be laid off. If you are a SM and have a good shift team you should be set.

[sbux4life]

I am an ASM in Ohio and was not laid off today. I have been with the company for quite a while, and I have confidence that these cuts would not happen unless absolutley necessary. I hope everyone takes these cuts as what they are, a necessary part of sustaining a company in these rough economic times. Many people WANT to go to Starbucks, but simply can not afford it right now. Hopefully that will change and the company that we have all been dedicated to will bounce back. Best of luck to all my former partners, and I hope that we can all move foreward.

[buxy]

@SoOverIt

when the rumors for this round of layoffs started circulating on this site someone said retail was 'safe' then retail was officially told that they would be losing several thousand positions, 1400 ASM positions is not the final picture ...

@Toronotodude

Optimal Scheduling started rolling out to Canada 3 months after it started rolling out to the states. I'd be dissappointed if they didn't gear this towards CN properly as they built out forms and training specific to the CN market. In US optimal scheduling was rolled out in the fall, partners were given notice that if they weren't currently meeting the minimum availability standards for part time work they had until March to meet the minimum availability standards (6 months of notice) ... CN partners will also have 6 months to meet their new minimum availability standards.

[FormerFSM]

Hi Venti Dissapointed,
You can still collect unemployment if you accept the severance, at least in CT. I was laid off in November, and recieved my first unemployment check the following week. I just had to attend a hearing, that Starbucks did not challenge at. You can not go back to work at Sbux until your severance is cut, which in my case took 5 weeks, otherwise you will lose it.

[KA]

My husband was a ASM who got cut today, He was a top performer and had just passed his panel for SM. He was often sent to other stores to train or cover for SM's who went on vacation. Had stellar reviews It would be interesting to know how they decided who got cut

[Herman Melville]

"Partner first" company takes on a whole new meaning, like

Schultz: "who are we firing today boys,"
Chad: "Partners first."
Schultz: :I'm so happy we are staying true to the guiding principles."
Chad: "Me too boss"

[JT]

Is there a complete list somewhere?

[Ex Partners Wife]

Yea my husband also got cut too. He was only with the company for a year. He was told right after Christmas to be ready to panel for SM. He had gotten great reviews.

Instead we found out someone in HR lost a computer with my husband's personal information along with thousand of other partners. We got a letter 4 weeks later and given 1 year of credit monitoring over that due to fact the company waited 3-4 weeks to notify the partners without credit protection.

Now he has no job. Yes let's put "Partner First" while the company figures out how to sell their extra jet.

[scootes]

BOSTON STARBUCKS REBEL you crack me up!!!!!!!!!!!! let the bodies....
i said in november when the last big -3% conference call that i saw the same thing happen in 92 at the hyatt. sad for all those that have given so much. hope they get some of what they worked for. i'm glad i know how to be poor! poor will survive where as others may not.

[anonymous]

in regards to Unemployment Benefits...

the Company WILL contest it, regardless if the severed employee was fired, quit or laid off due to cuts/store closures. that's just them, trying not to pay someone who isn't working for the company anymore-- if that makes sense.

while they will contest it, most state workforces are on the side of the workers, not the companies, so you can look forward to that unemployment benefit check.

...i know i'm satisfied with mine, for the time being.

[scootes]

does anyone realize that when your ASM hours are gone that means your tip shares will drop do to the fact that these hours are to be made up by a tipped employee? just a thought

[?]

This is all very sad and unfortunately plenty of incorrect information out there. The entire economy is in turmoil and the truth is Sbux is not immune to that. There is so much more behind all these decisions that can be said or people know. It is sad for anyone to be without a job but Sbux is not alone in making these tough decisions lately.

[Asher]

Regarding Optimal Scheduling, I was told by my DM today that our focus is going to be on bringing in and keeping more partners with full-time commitment and have less P/T partners. I am in an over-staffed store and was told to start preparing to have some "tough" separation conversations with baristas at the end of March. In essence, the baristas with the least amount of availability (regardless of whether or not they're meeting minimum expectations) will be the first to go...

I saw a lot of close friends and colleagues affected by today's layoffs. My thoughts and wishes go out to those partners and their families who were affected today.

[sad dm]

I can't speak for other areas of the company but for California this is how it went down in most regions;

DM"s are asked to a Succession Planning meeting and need to bring a current assessment of their ASM partners. Partner Resources brings the most recent reviews. The RD brings the list of how many cuts are to be made.

Each DM is told what number they need to get to and they then cut based on the store. So, if store 001 has 1 ASM and now doesn't earn it any longer based on volume, that ASM gets cut. Regardless of performance or prior reviews.

However, if the DM can make a valid case that the ASM in store 002 (which isn't getting cut) is a much better performer, than they can cut that partner and move the 1st ASM to store 002. This is a REAL dicey maneuver that Partner Resources doesn't want to happen as it invalidates "job elimination" as a reason for lay off and opens Sbux for a lawsuit. Sbux gets around this by forcing you to sign a waiver in order to get your severance.

Now, if another nearby district has unfilled needs that aren't getting cut, than an ASM can be moved to that district. However, that 2nd DM can refuse, the ASM is laid off and a new ASM is found or promoted to fill that position. This isn't a legal problem as the open positon was not someones job at the time of the lay off.

Now, most RD's and Partner Reources Managers aren't going to let any shenanigans happen, that is why really good ASM's are being let go and others are staying. They are taking them out simply based on the store that doesn't earn them any longer.

[pintobean]

I work at the KENT ROASTING PLANT and our PLANT MANAGER announced today that they will cut 23 MACHINE OPERATOR POSITIONS. Three PRODUTCION SUPERVISORS were cut today too. We were getting phone calls from other PARTNERS at the SSC telling us they were cut as well. Anyone know what other departments were cut? So far we know of Senior Distribution Analyst and someone in the QUALITY ASSURANCE...

[YorkPA]

York let go two Op managers today. One in roasting one in packaging.Plant Manager would not specifically say there names, only that they were told there positions were eliminated today.
A sad day for all partners.

[Cut out the Heart]

The fact of the matter is that when sales are down, positions will be eliminated. S has it right on that issue however, for a company that espouses to be one built on taking care of the employee (isn't that the premise of Howard's book) they sure do a crappy job delivering. First of all, make no mistake about it, these layoffs are about money and that is it. Performance, dedication, engagement, hard working, partners are on the outside looking in for one reason only, they make too much money. Chet seems to have taken one from the Circuit City HR manual and is cutting "expensive" employees who have tenure and high wages. Anyone ask how they got to that point? Well, it is because they are good employees who have made the company millions upon millions upon millions of dollars. Much of that money sits in Howard, Michelle, Chet, Cliff, Troy, and Martin's checking accounts. The other issue here is that people are being stripped of their dignity in these layoffs. The pattern of behavior is to ask people to leave and do so in a very undignified manner. No goodbye's to their co-workers just cut off at the knees. I would expect that from other companies but not Starbucks. My friend that was let go felt that she had done something wrong and took a huge hit to her self-esteem. The only thing she did wrong was be successful and deliver a great "third place" experience for her Partners, Guests, and co-workers.

Tough times do call for tough decisions however, in the world of Starbucks, tough decisions seem to come with little caring, empathy, and integrity. I would relish the opportunity to debate Howard and Chet on their practices but unfortunately they are hiding behind emails and memos to the field and letting the RD's and DM's do their dirty work. Howard only comes out when he thinks he has some "earth shattering new innovation to share". Most of the time, these ideas have just ended up costing the company millions of dollars with no sales as a result and continuing spiral downwards.

Get a clue and get out. The street would reward the company the day that Howard resigns, that you can take to the bank.

[beantheredonethat]

My heart goes out to those who lost their jobs today. Take it from a partner laid off last July, life will get better. Much better. I know it doesn't look like it now. And the path forward will not be easy.

But you will eventually look back and be happy you no longer work for what is really a shit hole of a company. A company that likes to think it is different and special and that it cares for its partners unlike any other company. But in reality, Starbucks is just another McDs or WalMart.