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Starbucks to cut 1,100 Corporate Roles in CEO Niccol's Turnaround Push

Starbucks will eliminate 1,100 corporate roles as part of its turnaround efforts under new CEO Brian Niccol, who is pushing to simplify the company's structure and improve efficiency. The move, which will not affect in-store teams, aims to reduce complexity and drive better integration across the organization. By removing less popular beverages from the menu, Starbucks is also taking steps to streamline its offerings.

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Starbucks CEO Brian Niccol is urging corporate employees to increase their workload and take responsibility for the coffee giant's financial health following recent layoffs. The company has been struggling with declining sales and inflation, which has made consumers more cautious about spending. To address these issues, Niccol has unveiled a "Back to Starbucks" strategy aimed at restoring the brand's momentum and return to its roots.

Starbucks is undergoing significant changes in its executive leadership, with CFO Rachel Ruggeri exiting the company. CEO Brian Niccol's "Back to Starbucks" plan aims to improve core coffee products, pricing, and service, but the latest quarter results show a flat revenue and earnings per share decline. The new CFO, Cathy Smith, will play a role in implementing Niccol's turnaround strategy.

Starbucks has appointed Cathy Smith, a retail industry veteran, as its new Chief Financial Officer (CFO), bringing her expertise to aid CEO Brian Niccol's efforts to transform the coffee giant. Smith will join after leading finance operations at department store chain Nordstrom for about two years and previously serving as CFO at big-box retailer Target for five years. The appointment is seen as a key move in the company's turnaround plan, which focuses on streamlining business through job cuts and improving customer experience at its U.S. stores.

Nordstrom has exceeded Wall Street expectations for its quarterly sales growth, driven by strong customer response to its offerings across both banners. The company's decision to go private with a $4-billion deal from the Nordstrom family and Mexican retailer Liverpool marks a significant strategic shift. As CEO Erik Nordstrom emphasized, customers have responded positively to the strength of the offering.

The well-established Starbucks Corporation has seen a substantial price increase on the NASDAQGS over the last few months, but shareholders may appreciate recent gains, while still needing to determine if there's an opportunity to buy at the right time. The company's stock seems fairly valued according to our valuation model, trading around 8.6% below its intrinsic value, indicating a reasonable price for investors. However, future growth potential and the management team's track record remain important factors to consider when evaluating an investment in Starbucks.

Albertsons has announced the retirement of CEO Vivek Sankaran, with Susan Morris, the current COO, set to take over the role on May 1. This leadership transition follows the supermarket chain's recent challenges, including a failed merger with Kroger, and marks a strategic shift towards enhancing digital sales and retail media initiatives. As Morris steps into the CEO position, she will also be responsible for executing the company's "Customers for Life" strategy aimed at improving customer retention through loyalty programs and personalized experiences.

Albertsons has appointed Susan Morris, its chief operations officer since 2018, to take over the top role following the retirement of CEO Vivek Sankaran. The move aims to shift focus towards building digital sales and retail media business, a strategy that aligns with Morris's background in driving operational efficiency. As part of her new role, Morris will also oversee the execution of "Customers for Life" strategy, which seeks to retain customers through loyalty offerings and personalized digital experience.

Disney is eliminating 6% of its staffers, or nearly 200 employees, from its news and entertainment division as part of efforts to streamline operations amid declining linear television revenue. The bulk of the cuts will impact ABC News, which is also shuttering its political and data-driven news site 538. Disney's restructuring aims to restore efficiency and reduce costs as the company continues to invest in streaming endeavors.

Thyssenkrupp has announced plans to eliminate approximately 1,800 jobs in response to ongoing challenges within the automotive sector, attributing the decision to persistently low production volumes and uncertainty surrounding new tariffs. The company aims to save over 150 million euros by freezing hiring and reducing investments alongside the workforce reduction. This move highlights the broader struggles faced by automotive suppliers as they adapt to shifting market dynamics and the slow transition to electric vehicles.

Kroger's sudden leadership change has sent shockwaves through the retail industry, leaving investors to wonder about the true reasons behind Rodney McMullen's resignation. The company maintains that the issue was unrelated to financial performance or operations, but its seriousness prompted a violation of ethics policies. As Kroger navigates this transition, it must also address ongoing legal disputes and the lingering impact of its failed merger attempt.

Kroger has ousted long-time CEO Rodney McMullen after a board investigation found that his personal conduct was "inconsistent" with certain company policies, marking a surprise move that comes as the company grapples with the aftermath of its abandoned Albertsons merger. The ouster raises concerns about Kroger's leadership stability and ability to navigate complex operations. The sudden change may have implications for investors and employees alike.

DHL has unveiled plans to cut about 8,000 jobs in Germany this year as part of a strategy to save more than 1 billion euros ($1.08 billion) by 2027, after the logistics group reported a 7% fall in annual operating profit. The job cuts, representing more than 1% of the total workforce, will occur in the Post & Parcel (P&P) Germany division through attrition, rather than compulsory redundancies. This move is part of a broader effort to address cost inflation and declining letter volumes.

The U.S. government agency responsible for providing benefits to tens of millions of older Americans plans to reduce its workforce by over 12 percent, citing the need to streamline operations and eliminate non-mission critical functions. The Social Security Administration (SSA) aims to reach a staffing target of 50,000 employees from its current level of approximately 57,000 staff members. This move is part of the Trump administration's broader plan to reduce the size of the federal workforce.

Consumer Reports has released its list of the 10 best new cars to buy in 2025, highlighting vehicles with strong road test scores and safety features. The announcement comes as Eli Lilly & Co. is expanding its distribution of weight-loss drug Zepbound at lower prices, while Target is scaling back its DEI efforts amidst declining store visits. Meanwhile, Costco's luxury goods segment continues to grow, and Apple has secured President Trump's backing for its new investment plan.

US retailers are walking a tightrope between publicly scrapping diversity, equity and inclusion programs to avoid potential legal risks while maintaining certain efforts behind the scenes. Despite public rollbacks of DEI initiatives, companies continue to offer financial support for some LGBTQ+ Pride and racial justice events. Retailers have also assured advocacy groups that they will provide internal support for resource groups for underrepresented employees.

The Internal Revenue Service is drafting plans to reduce its workforce by up to half through a combination of layoffs, attrition, and buyouts, according to two people familiar with the situation. This move is part of the Trump administration's efforts to shrink the size of the federal workforce through various measures. A significant reduction in force could render the IRS "dysfunctional," said John Koskinen, a former IRS commissioner.

Kroger Chairman and CEO Rodney McMullen has resigned following an internal investigation into his personal conduct. Kroger, the nation's largest grocery chain, said Monday that the investigation into McMullen's personal conduct was unrelated to the business, but was found to be inconsistent with its business ethics policy. Board member Ronald Sargent will serve as chairman and interim CEO, effective immediately. Sargent has been on Kroger's board since 2006 and has served as the lead director of the company since 2017.

BlackRock has officially withdrawn from climate groups and eliminated diversity targets, signaling a significant shift away from its previous commitments to environmental, social, and corporate governance (ESG) initiatives. This retreat comes amidst increasing pressure from conservative critics and legal risks, reflecting a broader trend among major corporations to distance themselves from "woke" policies in response to political backlash. Despite these changes, BlackRock has continued to report strong financial results, suggesting that the company may be prioritizing profitability over its earlier ESG commitments.

The Department of Veterans Affairs will begin mass layoffs, targeting more than 80,000 workers, in an effort to reduce the agency's size by at least a fifth. The planned cuts, which could be finalized by June, have been met with criticism from Democrats and some Republicans, who argue that they threaten veterans' health benefits. The layoffs are part of a broader effort by President Donald Trump and billionaire adviser Elon Musk to slash the federal government's workforce.

RBC has laid off some employees as a result of changes at its business segments following the C$13.5 billion acquisition of HSBC's domestic business last year. The layoffs were reported to have started earlier this week, affecting various teams including technology and operations, personal banking, and commercial banking. The restructuring aims to better position RBC for future growth opportunities.

RBC has laid off some employees as a result of changes at its business segments following the acquisition of HSBC's domestic business last year for C$13.5B. The restructuring is aimed at optimizing RBC's operations and improving efficiency in its retail banking division. This move follows a similar trend seen in other financial institutions, where cost-cutting measures are being implemented to adapt to changing market conditions.

Google (GOOG) has introduced a voluntary departure program for full-time People Operations employees in the United States, offering severance compensation of 14 weeks' salary plus an additional week for each full year of employment, as part of its resource realignment efforts. The company aims to eliminate duplicate management layers and redirect company budgets toward AI infrastructure development until 2025. Google's restructuring plans will likely lead to further cost-cutting measures in the coming months.

Kroger's long-time CEO Rodney McMullen has resigned after a board investigation found his personal conduct was "inconsistent" with certain company policies. The probe did not involve any associates and is unrelated to financial performance or operations. McMullen's ouster comes as the company navigates the aftermath of its abandoned $25 billion deal with rival Albertsons.

Elon Musk's initiatives to reduce government employment through his Department of Government Efficiency (DOGE) are projected to adversely affect sales at fast-casual restaurants like Cava, Shake Shack, Chipotle, and Sweetgreen, particularly in the Washington, D.C. area. Bank of America analysts highlight that a significant portion of these chains' business relies on government workers, whose diminished presence due to layoffs could lead to reduced foot traffic and sales. The ongoing decline in jobless claims in D.C. signals a challenging environment for these restaurants as they adapt to shifting consumer behavior driven by workforce changes.

At least a dozen probationary staffers at the Federal Trade Commission were terminated last week, with terminations taking place across the agency. The FTC's staffing cuts follow a familiar playbook driven by Elon Musk's Department of Government Efficiency (DOGE), targeting probationary employees in an indiscriminate manner. The agency's internal equal opportunity office was also cut from six to three staffers.