Starbucks Reduces Corporate Bonuses Amid Sales Decline

Starbucks is cutting its corporate employees' holiday bonuses by 40% due to its worst financial performance since the pandemic, with many workers receiving only 60% of their expected bonuses. This decline is attributed to a 2% drop in global same-store sales and an 8% decrease in operating income for the fiscal year ending September 29. The company has struggled as inflation has forced consumers to reduce spending on premium coffee products, compounded by operational issues like long wait times. New CEO Brian Niccol, who took over in September, is implementing strategies to enhance customer experience and turnaround sales. Despite a slight increase in revenue, overall earnings for the company fell short of expectations, leading to significant cuts in employee bonuses across the board. Starbucks' challenges reflect broader trends affecting the fast-food industry as customers prioritize value amid economic pressures.