United States: Starbucks is eliminating 1,100 corporate jobs and reducing its menu by nearly a third to boost its struggling US business. The changes, set to take effect on March 4, will see the removal of several drinks, including the Royal English Breakfast Latte, White Hot Chocolate, and select frappuccinos.
The company said the menu cuts strive to reduce wait times, improve quality, and enhance efficiency. Starbucks stated that, “We’re simplifying our menu to focus on fewer, more popular items, executed with excellence.”
The job cuts will primarily involve corporate “support partner” roles and will not impact store-level employees or investments. Starbucks also announced the elimination of several hundred unfilled positions.
The company has faced dropping US sales, with transactions at stores open at least a year dropping 8 percent in the last quarter. Rising prices, long wait times, and ongoing unionization efforts among baristas have contributed to customer dissatisfaction.
CEO Brian Niccol, who previously led Chipotle, was brought in last year to help refocus the brand on its core identity as a coffee company. The shift towards a streamlined menu marks a departure from Starbucks’ previous strategy of highlighting highly customizable drinks.
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