News

Starbucks' changing corporate culture

November 10, 2010

A new article by Reuters has questioned the new corporate culture of Starbucks and its impact on store-level employees.

Starbucks posted record earnings for its fourth quarter; however, many of the company's baristas and general managers have claimed cutbacks have diluted what once made the company one worth working for.

From the story:

Disillusionment among Starbucks workers like Swanson may be early signs of a culture change that could strike at the heart of what makes Starbucks Starbucks: that warm, fuzzy feeling stemming from its original commitments to the global community as well as its own healthy, happy staffers who provide service with a smile.

Of course, Starbucks' cafe workers are not the only ones being asked to work more for less. But the world's biggest coffee seller built its reputation as the anti-McDonald's. ...

For now, Wall Street is all smiles. After all, shares in Starbucks Corp have nearly tripled from recent lows and appear poised for more gains. But for investors and management, the question is whether Starbucks can keep growing if the Starbucks culture unravels.