Starbucks cuts worker bonuses to 60% as sales decline

Starbucks will reduce bonuses for many US corporate workers to 60% of their full amount due to its first annual sales decline since 2020, according to Bloomberg.

Based on individual performance and company results, employees’ bonuses are typically paid in December, ranging from 5% of base pay for staff to 45% for senior vice presidents.

Sales in the US and China, Starbucks’ largest markets, fell short of expectations, with same-store sales dropping 7% in the recent quarter—the steepest since the pandemic. 

Fourth-quarter net income fell to $909.3 million from $1.22 billion a year earlier, as net sales dropped 3% to $9.07 billion.

Under new CEO Brian Niccol, Starbucks plans to revamp its strategy to reverse the 2% global store sales decline for the year, driven by a 4% drop in transactions.