Layoffs, Store Closures & What It Means for Customer Service
Exclusive Interview with Mario Matulich
In a world where corporate decisions often prioritize efficiency, the human element can be the first to suffer. The recent layoffs and restructuring at Starbucks, a brand synonymous with a unique, human-centered “third place” experience, have sent a tremor through the industry. In a wide-ranging interview, we will unpack the strategic and operational implications of these changes. Together, we will explore the difficult balance between trimming corporate fat and maintaining a brand built on emotional connection, diving into how these decisions could affect everything from in-store morale to the long-term loyalty of its customers. Central to the conversation is the following strategic question:
How can a company that has undergone significant corporate restructuring and layoffs maintain and restore a premium, human-centered customer experience?
Today we will explore this question, along with its various aspects with our special guest Mario Matulich, a practice lead at the Customer Management Practice with a diverse commercial understanding in a variety of industry verticals across the customer management sector. He is well versed in market research, product development, sales, marketing, and operations in addition to cross functional management and leadership development.
Without further ado, here is the Q&A I had with Mario on a range of topics regarding the recent Starbucks’ store closures and layoffs and their implications:
The Strategic Context of the Layoffs
Q: Starbucks’ leadership framed the recent restructuring as a necessary step for efficiency and a return to their core mission. From your perspective in customer management, how do these internal changes directly affect the external customer experience in the short and long term?
A: In the short term, layoffs, especially in corporate roles, can create gaps in innovation, brand narrative, and strategic support for store-level teams. Employees on the front lines may feel increased pressure, which can impact morale and the human connection customers expect. In the long term, if these gaps aren’t addressed, the result can be a more transactional experience that erodes both loyalty and trust.
Q: In many companies, layoffs are a last resort. Do you believe this restructuring reflects a failure of previous strategies, or is it a forward-thinking move to adapt to a changing market? What specific market trends do you think are driving these decisions?
A: I don’t view this restructuring as purely a failure of previous strategies, but rather as an attempt to adapt to a changing market. That said, Starbucks’ bigger challenge is restoring its customer experience. Trends such as rising demand for personalized, convenient, and high-value experiences, along with increased competition in the premium coffee market, make it clear that customers are evaluating Starbucks not just on price, but on the overall experience delivered.
Q: The layoffs primarily targeted corporate roles in marketing, technology, and creative. How does the loss of talent in these specific areas impact the company’s ability to innovate and maintain its brand narrative?
A: These areas are critical for innovation, storytelling, and digital experiences that connect customers to the brand. Losing talent here makes it more challenging to maintain a consistent, differentiated experience and risks further disengagement from customers.
Impact on the Human-Centered Experience
Q: Starbucks has long prided itself on the “third place” concept. How does restructuring and potential employee demoralization affect the in-store experience and the emotional connection customers have with the brand?
A: The “third place” experience relies on motivated and supported employees. Restructuring can disrupt this, as uncertainty and low morale may trickle down to in-store interactions. Customers may perceive a decline in warmth, attentiveness, and consistency, which can undermine the emotional connection.
Q: With fewer people in corporate roles, who now owns the responsibility for a seamless customer journey? Does this push more responsibility onto store-level partners, and if so, are they equipped to handle it?
A: While partners remain at the front line, the burden shouldn’t fall solely on them. Leadership must provide tools, guidance, and support to ensure a seamless experience, even as corporate teams shrink.
Q: Customer management is about building long-term loyalty. Do you believe this restructuring risks eroding the trust and loyalty of both employees and customers, and what would your practice recommend to mitigate that risk?
A: Yes, there’s definitely a risk. The key is to go back to the basics and make the experience personal, easy, and fast. Nail those, and customers’ trust and loyalty will .,¬./come back, and the layoffs won’t linger in their minds.
Measuring and Recovering from the Impact
Q: How would you advise Starbucks to measure the real-time impact of these changes on customer satisfaction? Beyond traditional metrics like NPS, what holistic experience measures should they be tracking?
A: Starbucks should look beyond NPS to measure speed of service, personalization, emotional connection, and overall experience consistency. These metrics provide a more comprehensive view of the customer journey and help identify gaps that layoffs may create.
Q: Layoffs can create a perception of instability. What is the most effective way for a company to communicate its recovery plan and rebuild confidence with its customer base after such a significant change?
A: Clear communication focused on restoring the core pillars of customer experience, personalization, ease, and speed, is key. Customers respond when they see tangible improvements in the experience they receive every day.
Q: In your experience, what is the typical timeline for a company to recover from the brand and cultural damage that can follow widespread layoffs? What are the critical milestones they should be focused on achieving?
A: Recovery timelines vary, but visible improvements in customer experience can begin within months if executed strategically. Critical milestones include reestablishing operational consistency, restoring employee morale, and relaunching key brand initiatives that reinforce the premium experience promise.
Future-Proofing for Long-Term Growth
Q: Looking ahead, how can Starbucks utilize this moment of disruption to adopt a more resilient and human-centered organizational model? What key lesson should other companies learn from their experience to avoid similar pitfalls?
A: Starbucks has a chance here to get back to what really made it successful: combining innovative, tech-forward solutions with a human touch, every time. The bigger lesson for any company is clear. Growth and cost-cutting shouldn’t come at the expense of the customer experience. People are willing to pay a premium, but only if the experience feels worth it.
Q: What message does it send that the popular Starbucks Roastery location in Capitol Hill in Seattle is being closed as part of this layoff and restructuring initiative? Why do you think they chose to do it?
A: Closing the Roastery signals a prioritization of efficiency over experiential destinations. While it may make financial sense in the short term, it also serves as a cautionary reminder that iconic, high-touch experiences are critical to maintaining brand differentiation and customer loyalty.
Conclusion
Thank you for the great conversation Mario!
Ultimately, the Starbucks case study is a powerful lesson for every organization. As Matulich’s insights make clear, the pursuit of efficiency and growth cannot come at the expense of the human experience that defines your brand. The true measure of a company’s resilience is not in its stock price, but in the trust it has built with its employees and customers. A single-minded focus on traditional metrics is insufficient; a holistic approach that values emotional connection and employee morale is the only path to sustainable growth. The greatest challenge for Starbucks now is to move beyond reacting to a difficult market and begin proactively shaping its future—not just through cost-cutting, but by recommitting to the core narrative that made it a cultural institution in the first place. The future of any business is not found in a spreadsheet; it’s built on a foundation of human connection, one interaction at a time.
Image credits: Pexels, Mario Matulich
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