Starbucks (SBUX) is eliminating jobs as CEO Brian Niccol focuses on its Back to Starbucks plan.

To "operate more efficiently" will involve making "difficult decisions and choices," he wrote in a letter posted to Starbucks website. He expects the effort will lead to "job eliminations and smaller support teams moving forward." Employees who are being let go will know by early March.

"I do not take these decisions lightly, and I appreciate that this will create uncertainty and concern between now and then. I wanted to be transparent about our progress and our plans and ensure that you hear about this work directly from me," he wrote.

As of September 29, 2024, Starbucks employs around 361,000 workers globally and 211,000 in the US. A majority of that is in-store employees, who will not be impacted. Rather, it will affect corporate support roles, of which there are roughly 10,000 across the globe.

Niccol noted steps taken in the US and Canada since he took over in September, including the return of the condiment stations, and eliminating the up-charge for alternative milk. It also set a goal to get customers their handcrafted beverage in four minutes or less, and add shifts in over 3,000 stores.

"We have much more work to do but I’m pleased with the progress we’ve made," he wrote. Starbucks did not immediately respond to Yahoo Finance for comment.

The former Chipotle CEO aims to invigorate sales growth for the 53-year-old company after consecutive quarters of disappointing results.

In a recent note to clients, Deutsche Bank analyst Lauren Silberman called this the "early innings" of Starbucks' turnaround strategy with a boost in traffic in the coming months "supported by better marketing, operations and innovation."

She added, "An inflection in US SSS is the key catalyst for the stock, while news around China optionality also supports upside."

Starbucks stock have severely underperformed the S&P 500 (^GSPC) in the last year, up less than 4% compared to the 26.5% gain of the latter.

This is the third announcement from the coffee giant this week.

On Monday, the company announced the implementation of a Coffeehouse Code of Conduct, where only paying customers can sit in-store.

Starbucks spokesperson Jaci Anderson told Yahoo Finance Monday it is "a practical step that helps us prioritize our paying customers who want to sit and enjoy our cafes or need to use the restroom during their visit."

On Thursday, 20-year board member Mellody Hobson announced her plans to retire from the Board of Directors. The board will now have 9 members and there are no current plans to fill her seat.