(Yicai) Feb. 25 -- Starbucks' new round of mass layoffs will not affect the China region, its second-largest market and an outlier that managed to increase sales last quarter, The Paper reported today.

Starbucks remains confident in the vast potential of the Chinese market, a representative of the Seattle-headquartered coffee chain told the Chinese financial media outlet.

Several media reports stated that Chief Executive Brian Niccol wrote a letter to employees yesterday announcing that the coffee chain is laying off 1,100 corporate workers. The company has also reportedly decided not to fill "several hundred" open positions. However, baristas and other store-level employees will not be affected by these measures.

This is Starbucks' first round of layoffs since 2018, expected to impact around 7 percent of the company's global non-store workforce. The aim is to improve efficiency, implement changes swiftly, and revitalize the company.

Starbucks reported a 24 percent decline in net profit to USD781 million in the fiscal first quarter compared to a year ago, according to its latest interim report. Revenue remained flat at USD9.4 billion, still exceeding market expectations.

During the quarter ended last December, Starbucks opened nearly 380 new stores, bringing the global total to 40,580. Stores in the United States constitute 42 percent of the total, while China accounts for nearly 19 percent. Revenue from China rose 1 percent to USD744 million in the three-month period compared to a year ago. However, comparable store sales dropped 6 percent due to discount campaigns.

Starbucks reiterated in November that it is exploring strategic partnerships in China after Bloomberg reported that the company was considering selling a stake in the business to a local partner, citing people familiar with the matter.

Editor: Emmi Laine