jobcutssculpture-18198_960_720
Business, Employment, Finance, Laff Offs

UNEMPLOYMENT-Joann OUT-Starbucks-Workday CUTS JOBS

  • Starbucks cuts 1100 Corporate Employees redesigns menu.
  • WorkDay, replace 2000 jobs/humans with A.I.
  • Joann Fabrics, 80 years, 800 Stores Closed, Out Of Business

It’s all about pleasing the investors. Some, like Workday, cuts USA jobs and hires in other countries for PENNIES/MINOR DOLLARS per hour. Workday opened offices, hired 2000 people in Costa Rica, Ireland and India.

Truth:

  • 1 USD = $505.46 Costa Rican Colones
  • Why Pay a a Sr. Software Eng, USA $70 hr – $140k when the same person is $15.86Hr, (USD)
  • $33k USD a Year AKA $1.4 Million CRC a month – $17,850,000 CRC Million a year!

Corporate Job Cuts and Closures: Starbucks, Workday, and Joann Fabrics Make Major Workforce Changes

 

Starbucks storefrontAs quoted, https://www.starbucks.com/about-us/, 02/28/2025

Starbucks to Lay Off 1,100 Corporate Employees and Revamp Menu

Despite rising stock prices and increasing profits, Starbucks has announced a reduction of 1,100 corporate jobs as part of a broader cost-cutting and efficiency strategy. However, the layoffs do not impact store employees, warehouse staff, or those in manufacturing, distribution, and roasting operations.

CEO Brian Niccol is implementing a streamlined menu, which will result in the removal of underperforming beverages, including select Frappuccinos and the Royal English Breakfast Latte. These changes will take effect starting March 4, with further reductions expected—the menu will shrink by 30% by September.

Niccol’s focus is on enhancing the in-store experience and optimizing product offerings, shifting towards premium beverages like the cortado while reintroducing popular seasonal items, including the lavender lineup.

This decision aligns Starbucks with other major corporations that are making similar cost-cutting moves to increase efficiency and boost profitability. Starbucks stock, which trades on Nasdaq, saw a slight increase of less than 1% following the announcement. Over the past year, the stock has climbed nearly 17%, slightly trailing the S&P 500’s 18% gain over the same period.

 

 

wkday-2025-02-27 10-23-14
wkday-2025-02-27 10-23-14, https://www.workday.com/

 

Workday Lays Off 1,750 Employees While Expanding AI Investments and Overseas Hiring

Just two weeks after announcing that 1,750 employees would be laid off, Workday CEO Carl Eschenbach is pushing back against concerns that AI will replace large segments of the workforce.

“I don’t think it’s going to destroy jobs at all,” Eschenbach said in an interview from Workday’s Pleasanton, California headquarters. “This is about augmenting humans in the workforce and driving a step function change in human productivity through the use of technology.”

However, Workday’s restructuring is largely seen as a cost-cutting move, with Eschenbach previously promising investors that the company would expand its profit margins. While he insists the layoffs were about “driving innovation” and capitalizing on the “tectonic shift” AI represents, the company is also strategically shifting its hiring overseas.

“We’re going to just be smart about where we hire our employees in the future,” Eschenbach stated, highlighting regions where labor costs are significantly lower than in California.

In recent years, Workday has expanded internationally, establishing offices in Costa Rica, where 1 USD equals 505.46 Costa Rican colones. The company has also hired 2,000 employees in Ireland and India, where salaries for senior software engineers are substantially lower than in the U.S.

For example, a senior software engineer in the U.S. may earn $70 per hour (approximately $140,000 per year), whereas the same role in India or Costa Rica could pay $15.86 per hour ($33,000 per year). That translates to roughly 1.4 million Costa Rican colones per month or 17.85 million colones annually.

Eschenbach predicted that Workday may have more employees by next year than before the layoffs, but with an increased emphasis on AI-driven innovation and a more globally distributed workforce.

 

 

Joann2025-02-27 10-26-16
Joann2025-02-27 10-26-16, https://www.joann.com/about-us/

 

Joann Fabrics to Close All 800 Stores After Second Bankruptcy Filing

After more than 80 years in business, Joann Fabrics is officially going out of business, closing all 800 stores across 49 states. The fabric and craft retailer has struggled financially for years, despite a temporary boost in sales during the early pandemic-driven DIY trend.

The company announced on Sunday that it is being sold as part of its second bankruptcy filing within a year, with the GA Group and its prepetition term lender acquiring the assets.

“In connection with this agreement, subject to Bankruptcy Court approval of the transaction, the winning bidders plan to begin winding down the company’s operations and conduct going-out-of-business sales at all store locations,” Joann stated in an official announcement.

The liquidation process is set to begin immediately and may take several weeks to complete.

As part of the closure process:

  • Gift cards will be accepted until February 28.
  • Personalized discounts and discount partnerships, such as those for Girl Scouts and teachers, have been paused.
  • Returns will no longer be accepted.

Joann, which is headquartered in Hudson, Ohio, originally filed for bankruptcy in 2023 in an effort to restructure its massive debt while keeping stores open. However, the retailer filed again in January 2024, with interim CEO Michael Prendergast stating that selling the company was the best available option.

Before its full closure, Joann had planned to shut down about 60% of its stores nationwide, signaling the decline of brick-and-mortar craft retailers in an increasingly e-commerce-dominated market.

 

The Bigger Picture: Cost-Cutting, AI, and Corporate Restructuring

The recent layoffs, store closures, and restructuring efforts across Starbucks, Workday, and Joann Fabrics highlight a growing trend among major corporations:

  • Starbucks is streamlining operations while increasing profits by cutting corporate jobs and simplifying its menu.
  • Workday is leveraging AI and shifting jobs overseas to maximize investor returns.
  • Joann Fabrics is unable to recover from mounting debt and declining sales, leading to its final liquidation.

These changes reflect a broader corporate strategy where investor satisfaction and cost-cutting measures take priority, often at the expense of domestic jobs and traditional retail.

 

Sources

Author: Ryan Bridglal, 02-27-2025