Starbucks is set to cut 1,100 corporate jobs and reduce its menu by nearly a third in a major shake-up aimed at improving business in the United States.
The changes, which will take effect on March 4, will see the removal of several drinks, including the Royal English Breakfast Latte, White Hot Chocolate, and a variety of blended frappuccinos. The company said the items being cut are either unpopular, difficult to prepare, or similar to other beverages already on the menu.
“We’re simplifying our menu to focus on fewer, more popular items, executed with excellence,” Starbucks announced on Monday. The company aims to reduce customer wait times, improve product quality, and align more closely with its identity as a coffee-focused brand.
The job cuts will affect corporate “support partner” roles but will not impact store employees or store-level investments. Starbucks also announced plans to eliminate “several hundred” unfilled positions. Affected employees will be notified by mid-day on Tuesday.
Chief executive Brian Niccol, who joined Starbucks last year after leading Chipotle, has been tasked with turning around the company’s declining US business. He emphasized a return to Starbucks’ roots as a coffee house, focusing on efficiency and customer satisfaction.
The decision follows a significant drop in US sales. Starbucks reported an 8% decline in transactions at US stores open for at least a year during the most recent quarter, compared to the same period last year.
The company has faced several challenges, including customer dissatisfaction over long wait times, rising prices, and tensions with baristas attempting to unionize. Starbucks has also been caught in political debates surrounding the Israel-Gaza conflict, facing boycott calls from both pro-Israel and pro-Palestine supporters despite maintaining a neutral stance.
Starbucks employs over 360,000 people worldwide, operating more than 40,000 stores globally. The US remains its largest and most significant market. The new strategy to simplify the menu marks a departure from the company’s previous focus on personalized beverages.
“Our intent is to operate more efficiently, increase accountability, reduce complexity, and drive better integration,” Niccol wrote in a statement, signaling further operational changes as the company works to regain momentum.
