Starbucks is making some tough decisions as part of its broader strategy to turn the company around.

CEO Brian Niccol revealed on Monday that the coffee giant will be cutting 1,100 corporate jobs and leaving hundreds of positions unfilled in the process.

These changes are aimed at streamlining the business and improving its focus for future success.

Focus on Efficiency and Future Growth

In his announcement, Niccol explained that the mass layoffs were necessary to remove duplicate roles within the company and increase overall efficiency.

“We believe it’s a necessary change to position Starbucks for future success,” he said in a statement.

This shake-up will mostly affect corporate employees, who make up around 16,000 of the workforce.

The good news for baristas and other store staff is that they won’t be impacted by these cuts.

Biggest Cuts in Years for Starbucks

These layoffs are some of the most significant in the company’s history, coming just a few years after Starbucks reduced its corporate workforce by 350 people—about 5% of the total—back in 2018.

Despite these efforts, Starbucks continues to struggle with declining sales.

For the fourth consecutive quarter, the company reported a 4% drop in sales during the quarter that ended in December.

Challenges Facing Starbucks

The chain’s ongoing issues stem from a combination of factors, including customers growing frustrated with rising prices, long wait times, and inconsistent service.

In response, Niccol has already started implementing changes to streamline operations, including reducing the number of menu items and cutting back on the number of promotions and deals.

Additionally, one of Starbucks’ popular perks—the ability to hang out at their cafes without making a purchase—has been removed in an attempt to boost revenue.

While these changes mark a difficult chapter for the company, Starbucks hopes that Niccol’s turnaround plans will help revitalize the brand and secure its future success.