Starbucks Cuts 1,100 Jobs: What This Major Move Means for Its U.S. Comeback

Starbucks is making some big changes. The company plans to cut 1,100 jobs and simplify its menu in the U.S. This move aims to boost sales, which have been dropping, especially in the domestic market.

The first drinks to be removed include the Royal English Breakfast Latte, White Hot Chocolate, and various blended frappuccinos. Starbucks intends to trim its menu by about a third over the next year. The goal? To speed up service and enhance the quality of popular items.

Sales have been on the decline since last year. The new CEO, Brian Niccol, who previously worked at Chipotle, is focused on getting Starbucks back to its coffee-house roots. He believes the company should focus on well-loved items rather than complicated drinks that customers rarely order.

The changes will take effect on March 4. Starbucks stated that the menu simplification will help create more space for innovative drinks while also improving wait times and maintaining quality. “We’re simplifying to focus on fewer, better items,” the company said.

As for the job cuts, they will mostly affect corporate support roles and will not impact store-level positions. Starbucks is also letting go of several hundred open positions that haven’t been filled yet. CEO Niccol aims to streamline operations and improve overall efficiency.

Starbucks currently employs over 360,000 people and operates more than 40,000 stores globally. The U.S. market remains the most significant for the brand. However, customers have been increasingly unhappy due to long wait times and rising prices. Additionally, baristas have voiced their intent to unionize, adding to the company’s challenges.

The controversy surrounding the Israel-Gaza war has also put Starbucks in a tough spot, facing calls for boycotts from various sides. In the last quarter, transactions at U.S. stores that have been open for over a year fell by 8% compared to the same period last year.

This move to simplify the menu marks a notable change from previous strategies that prioritized customized drinks.

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