Starbucks has reportedly scrapped its AI-powered "Automated Counting" inventory tool nine months after its deployment across North American stores due to frequent miscounting and mislabeling of items. The tool was part of CEO Brian Niccol's efforts to address product shortages.
The head honcho thinks splurging nearly $10 on a beverage during a cost-of-living crisis is fine for a ‘special experience’. It’s time to offer my own valuable adviceI don’t mean to vent, but what is up with Starbucks CEO Brian Niccol’s obscenely large compensation package? Niccol, who joined the company in 2024, is one of the best-paid executives in the US, raking in $96m (£70m) in just his first four months on the job. The man makes 6,666 times more than the company’s typical employee, according to a 2025 Executive Paywatch report. He also regularly commutes to work via private jet. Can’t expect a strategic genius to live next to the office like the rest of the hoi polloi.Still, while he might be good at flogging drinks, Niccol apparently has trouble reading a room. As the cost of living surges, and the federal minimum wage remains at $7.25, the CEO is getting roasted for calling a $9 coffee “a really affordable premium experience”. Speaking to the Wall Street Journal, Niccol noted that the K-shaped economy, in which higher-income households are thriving and splurging while the bottom half struggles, isn’t really affecting business. Continue reading...
Starbucks reports fiscal 2026 Q2 results Tuesday with analysts expecting 8.3% operating margin, up slightly from 8.2% a year ago but far below pre-pandemic levels of 17-19%. CEO Brian Niccol's 'Back to Starbucks' plan has improved traffic and comparable sales, but costs from added baristas and investments are weighing on profitability. The stock is up 7% since Niccol took over in September 2024, underperforming the consumer discretionary sector.
Starbucks is laying off staff within its technology organization as part of a restructuring effort led by CEO Brian Niccol. The company aims to streamline operations and improve efficiency, though the exact number of affected roles remains undisclosed.
