Starbucks' makes shock U-turn after years of job cuts

Starbucks has launched its biggest hiring spree in history — aimed at finally tackling  the number one gripe from frustrated customers. 

The recruitment blitz— adding as many as 85,000 workers across its 17,000 US locations — is a bold move aimed at slashing long wait times.

Customers have grown weary of waiting 20 minutes for a drink, with many walking away from the chain entirely. 

Soaring prices and what critics call a ‘soulless’ in-store experience have only added to the exodus — helping drive a sharp drop in sales. 

Starbucks’ new CEO, Brian Niccol, addressed 14,000 store managers during a Las Vegas event on Wednesday, describing it as ‘the most significant investment in human capital in Starbucks’ history.’

He emphasized that the aim isn’t solely to speed up service but also to alleviate the workload of overstressed employees and reinstate the welcoming atmosphere that once made Starbucks a cherished hangout, bridging home and work.

‘Your rosters are going to expand with this,’ Niccol told managers, who can begin hiring from August. 

Five years back, Starbucks outlets typically staffed around 23 employees. However, efforts to cut costs have reduced that figure to between 18 and 19, meaning each location now operates with four to five fewer staff members.

If Starbucks returned to pre-Covid levels that would see another 85,000 people hired

If Starbucks returned to pre-Covid levels that would see another 85,000 people hired

Restoring pre-Covid staffing levels would mean hiring between 68,000 and 85,000 people across all US stores. 

Even focusing solely on the 11,000 company-owned locations, the increase would still be a massive 44,000 to 55,000 hires.  

Jodi Love, a portfolio manager at T Rowe Price, a Starbucks shareholder, estimated the labor investments would add more than $1bn in additional spending to fiscal 2026.

But the move is expected to resonate with baristas on the frontlines, many of whom have long complained of chronic understaffing that fuels delays and drains morale.

The new hires are also expected to support Starbucks’ efforts to bring back a more personal touch — including a new policy asking baristas to handwrite notes on customers’ cups. 

Explaining the U-turn, Niccol told the Financial Times: ‘We over-rotated on the idea of equipment and that replacing the humanity of service,’ Niccol told the Financial Times.

‘And I think service is our point of difference. Despite everybody saying they’re more connected than ever, everything I read is people feel more lonely than ever.

‘I think part of the problem is there aren’t enough third places anymore.’

Former Chipotle boss Brian Niccol was hired to revive Starbuck's ailing fortunes

Former Chipotle boss Brian Niccol was hired to revive Starbuck’s ailing fortunes 

The new Starbucks boss has said he will simplify the chain's 'overly complex menu' in a bid to win back customers amid slumping sales

The new Starbucks boss has said he will simplify the chain’s ‘overly complex menu’ in a bid to win back customers amid slumping sales

Customers have increasingly been turned off by long wait times and rising prices at the chain

Customers have increasingly been turned off by long wait times and rising prices at the chain

Starbucks is scaling back the promotions and discounts offered through its mobile app

Starbucks is scaling back the promotions and discounts offered through its mobile app

Starbucks held

Starbucks held 

Niccol was hired last year in an effort to turn around the struggling chain.

Former CEO Howard Shultz agreed with Niccol telling Wednesday’s company event ‘we’re not a company based on technology.

‘That enables us, we’re a company based on people.’ 

The former Chipotle boss has embarked on a series of plans to return Starbucks to its original ‘third place between home and work’ concept.

Coffee drinkers have turned away from the chain in recent years, put off by high beverage prices, long wait times and impersonal experiences. 

Niccol has set about axing complicated drinks from Starbucks menus, asking staff to put messages on customer’s coffee cups and scaling back promotions. 

The plan will help address the major customer pet peeve of long wait times before getting their hands on a coffee. 

It will also likely be popular with front of house employees who have complained of chronic issues with understaffing, which compounds the backlogs. 

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