Starbucks stated that the removed items were not frequently ordered or complicated to prepare, allowing for a streamlining of the menu that prioritizes popular options. The job cuts primarily target corporate support roles without affecting store staff, although several hundred unfilled positions will also be eliminated. Despite employing over 360,000 individuals globally, Starbucks has faced declining transactions in U.S. stores, specifically an 8% drop in sales from the previous year. This restructuring reflects a broader shift from Starbucks’ earlier personalized drink strategies, as the company seeks to regain customer trust amid criticism over long wait times and rising prices. The firm has also been navigating challenges stemming from social issues, including controversies related to the Israel-Gaza conflict and ongoing labor union developments.
Starbucks Restructures Operations, Cuts Jobs and Drinks in US Effort to Revitalize Brand
Starbucks Restructures Operations, Cuts Jobs and Drinks in US Effort to Revitalize Brand
Starbucks is streamlining operations by reducing its menu and laying off employees to combat declining sales in the U.S. market.
In a significant step to rejuvenate its U.S. business, Starbucks is slashing 1,100 jobs and simplifying its drink menu, eliminating numerous beverages including the Royal English Breakfast Latte and White Hot Chocolate. The company aims to trim its offerings by nearly 30% over the next year to enhance quality, consistency, and reduce wait times for customers. Chief Executive Brian Niccol, who previously helmed Chipotle, is leading this transformation to refocus Starbucks on its core identity as a coffee provider. The changes are set to be implemented starting March 4.
