Breakingviews - Starbucks will go grande on workforce-lite future

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Breakingviews - Starbucks will go grande on workforce-lite future
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Starbucks is looking to automation for its growth. By pointing fingers at unions in 2023, the company can take control out of their employees’ grip, says alpgomez: BVPredicts

A sign showing support for a Starbucks Union is seen at the Workers United, an affiliate of the Service Employees International Union, offices in Buffalo, New York, U.S., February 23, 2022.will have a workforce that will grow increasingly restless in 2023. But that might only play to its plans of an employee-lighter future. The $120 billion latte maker is looking to automation for its growth. By pointing fingers at unions, the company can take control out of their employees’ grip.

The company faced growing pressure from its workforce, which put founder and interim Chief Executive Howard Schultz, who came back for a third time in 2022, in a tough spot. Starbucks’ employees started organizing in 2021 in Buffalo, New York, and by late 2022, workers at more than 250 stores, or 2% of U.S. locations, had voted to join a union.there is no need for unions, and he tried to make this clear through his uses of cash. In 2022, he paused stock buybacks in order to pay higher wages.

At the same time, Starbucks is moving quickly to automate, which will continue into 2023 under incoming CEO

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