Starbucks Shaking Things Up: 1,100 Jobs Cut and Menu Simplified
NEW YORK — In a bold move to revamp its struggling business in the US, Starbucks is slashing 1,100 jobs and streamlining its menu.
The first casualties on the chopping block include the Royal English Breakfast Latte, White Hot Chocolate, and various blended frappuccinos.
But Starbucks isn’t stopping there. The coffee giant plans to trim its menu by almost a third over the next year, with the goal of reducing wait times and enhancing quality and consistency.
Since last year, Starbucks has been grappling with a significant decline in sales, especially in its home market of the US.
With the appointment of CEO Brian Niccol, formerly of Chipotle, Starbucks is determined to make a comeback by refocusing on its roots as a coffee house.
The drinks facing extinction “weren’t commonly purchased, can be complex to make, or are like other beverages on our menu,” Starbucks disclosed. The menu revamp is set to take effect on March 4.
“We’re streamlining our menu to prioritize fewer, more popular items, executed with precision,” the company announced on Monday.
“This move will pave the way for innovation, reduce wait times, enhance quality and consistency, and align with our core identity as a coffee company.”
As for the job cuts unveiled on Monday, they are concentrated on corporate “support partner” roles and won’t impact jobs or investments at Starbucks stores, according to the company.
Affected staff will be notified by midday on Tuesday, and the company is also eliminating “several hundred” open and unfilled positions.
“Our goal is to operate more efficiently, foster accountability, reduce complexity, and drive better integration,” Niccol stated in the announcement.
Starbucks boasts a workforce of over 360,000 individuals and operates or licenses more than 40,000 stores globally.
While the US serves as its largest and most crucial market, Starbucks has faced challenges in recent years due to customer complaints about long wait times and high prices, as well as efforts by baristas to unionize.
Furthermore, the company found itself entangled in controversies surrounding the Israel-Gaza conflict, prompting boycott calls from both pro-Israel and pro-Palestine factions, despite Starbucks’ attempts to remain neutral.
Last month, Starbucks reported an 8% drop in transactions at US stores open for at least a year compared to the same period the previous year.
The decision to streamline the menu marks a departure from past strategies that emphasized personalized drinks. — BBC
