Starbucks employees slam coffee chain giant for 'race to the bottom' amid major job and store cuts

Starbucks has said it will cut about 900 US jobs and close its worst performing stores Stateside, and it will also shutter some UK stores as part of a cost saving initiative.

It's a move that has not gone down at all well with a number of employees, both past and present.

In a LinkedIn post, Katie Herod, Strategy Principal, Global Coffee & Sustainabilty, said: "While I am so fortunate to still have a job today, I'm angry. For 50 years, Starbucks has been a different kind of company - one that delivered long-term value to its shareholders by investing in and lifting up its people through generous benefits, an intentional and powerful culture, and a steadfast dedication to its craft."

"But two rounds of layoffs in six months signal a shift. A race to the bottom line, with jobless partners as collateral damage. Every partner leaving today is a piece of the fabric that makes this company inimitable, but the fabric is getting thin."

She added: "In a perhaps a career limiting move, I am pleading to my leaders in this very public way to protect the soul of this company. Protect its people. Protect its coffee. Protect its humanity. A good culture trumps a good strategy any day, and a good culture is only possible with good people.”

“I'm watching a lot of good people walk out the door today, and I'm heartbroken and I'm worried. As always, I'm here to help anyone looking for help or advice on independent consulting or contracting."

Responding to Herod's post, Jamie Thorn, a former Starbucks employee, said: "Thank you for this courageous post. I was part of round one (the first 1,100) after giving 22 years to a company I truly believed in. I thought I’d retire at Starbucks and was devastated."

"I have found “life after Starbucks” and there really is so much out in world! But, I’m saddened and angered by how things are playing out at what was once an iconic company due to the investment and care that was put into partners and the culture we upheld. Take care partners, you are valuable."

Whilst another former employee, Greg Clauson, commented: "As someone that was let go in May during the first massive layoff, that “leadership” team has a LOT of work to do to bring back any trust from current partners, or talented workers looking at Starbucks as a future employer."

"A lot of us gave decades to that place, only to have some Billionaire come in with his Jet commute and say “let’s get back to Starbucks” as if he has any clue what that means. I will forever be sad at what that place has become. I thought we were different, but we weren’t. It’s all about greed in the end."

Starbucks did not respond to our request for comment.

2025 RTIH INNOVATION AWARDS

Employee experiences will be a key focus area at the 2025 RTIH Innovation Awards.

The awards. which are now closed for entries with our finalists and shortlists being announced last week, celebrate global tech innovation in a fast moving omnichannel world.

Our 2024 hall of fame entrants were revealed during an event which took place at RIBA’s 66 Portland Place HQ in Central London on 21st November, and consisted of a drinks reception, three course meal, and awards ceremony presided over by comedian Lucy Porter

In his welcome speech, Scott Thompson, Founder and Editor, RTIH, said: “The event is now into its sixth year and what a journey it has been. The awards started life as an online only affair during the Covid outbreak, before launching as a small scale in real life event and growing year on year to the point where we’re now selling out this fine, historic venue.”

He added: “Congratulations to all of our finalists. Many submissions did not make it through to the final stage, and getting to this point is no mean feat. Checkout-free stores, automated supply chains, immersive experiences, on-demand delivery, next generation loyalty offerings, inclusive retail, green technology. We’ve got all the cool stuff covered this evening.”

“But just importantly we’ve got lots of great examples of companies taking innovative tech and making it usable in everyday operations - resulting in more efficiency and profitability in all areas.”

Congratulations to our 2024 winners, and a big thank you to our sponsors, judging panel, the legend that is Lucy Porter, and all those who attended November's gathering. 

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