Starbucks has announced cuts to both its workforce and menu as part of a broader initiative to address stagnant sales, notably in the US market. The coffee giant revealed it will eliminate 1,100 corporate jobs and streamline its offerings by nearly a third, aiming to enhance efficiency and customer experience. The changes, set to implement on March 4, will see the removal of low-selling items like the Royal English Breakfast Latte and White Hot Chocolate, as CEO Brian Niccol seeks to restore the company’s traditional coffee house identity.
Starbucks Revamps Strategy: Cuts Jobs and Menu Items for US Turnaround
Starbucks Revamps Strategy: Cuts Jobs and Menu Items for US Turnaround
In a bid to revive its declining sales, Starbucks is reducing staff and simplifying its beverage menu, focusing on core offerings.
Facing ongoing declines in US transactions, which fell 8% in the last quarter, Starbucks's latest strategy marks a significant shift from its earlier focus on customized drinks. To alleviate longer wait times and bolster product quality, the company plans to prioritize fewer, more popular menu items. The job reductions will primarily affect corporate positions but will not impact the customer-facing roles at local stores, and the company will also eliminate several hundred vacant positions, promoting a more streamlined organizational structure. As Starbucks grappled with challenges including unionization efforts and backlash from political controversies, this new direction is designed to foster accountability and a unified brand image going forward.
