Seattle's coffee scene is brewing with bad news as Starbucks announces significant layoffs in the region. According to Washington's Employment Security Department, a total of 974 employees in Seattle and Kent are losing their jobs. This includes both retail and non-retail positions, impacting a wide range of workers within the company.
The layoffs are slated to take effect on December 5th. This announcement follows Starbucks' previous statement last month about cutting around 900 non-retail jobs and closing some stores across the U.S. and Canada. The company cited financial performance and the need to create a better customer environment as reasons for the closures and subsequent job cuts.
Adding to the distress, Starbucks has already closed 31 stores in Washington, nine of which were in Seattle. These closures left 369 retail workers jobless, with reports indicating that employees were not offered transfers to other locations, according to Starbucks Workers United.
The closures and layoffs have sparked protests from Starbucks baristas and union leaders outside the company's headquarters. Workers have expressed frustration over the lack of communication and the sudden nature of the job losses. Trent Lytle-Hogue, a barista at the Reserve Roastery, voiced his dismay at learning about his job loss through social media before being officially informed by the company.
But what's driving these closures beyond financial performance? Some analysts suggest a potential shift in consumer values. A recent LinkedIn poll indicated that a significant portion of respondents (53%) don't drink Starbucks coffee, citing price as a major deterrent. This aligns with surveys showing Starbucks as the least affordable coffee chain compared to its competitors, with a growing number of people opting to make coffee at home to save money.
Furthermore, the timing of these closures raises questions. Fast Company reported that 59 of the closing Starbucks locations are unionized, fueling accusations of union busting, a practice Starbucks has long been accused of. Whether a shift in consumer values, financial performance, or union activity, the future of Starbucks in Seattle and beyond remains uncertain.