Starbucks Announces Major Layoffs and Menu Overhaul to Revive US Business

In a significant move aimed at rejuvenating its struggling business in the United States, Starbucks has announced the elimination of 1,100 jobs, primarily impacting corporate "support partner" roles. Along with job cuts, the coffee giant plans to streamline its menu, targeting a reduction of nearly a third of its offerings over the next year in an effort to improve service speed and quality for customers.

Starbucks already has plans to eliminate items like the Royal English Breakfast Latte and White Hot Chocolate, stating that these drinks were rarely purchased and time-consuming to prepare. Chief Executive Brian Niccol, who joined the company last year, is focused on returning Starbucks to its core identity as a coffee-centric brand. This shift reflects a response to challenges including a prolonged decline in sales, with a reported 8% decrease in transactions at US stores year-on-year.

The company aims for the menu simplification to cut down wait times and enhance the customer experience, promoting a return to fewer, signature items. The job cuts will not impact store level employment, and the company will notify affected employees by midday Tuesday. Starbucks, which employs more than 360,000 individuals worldwide, has also been experiencing external pressures, including calls for boycotts amid the Israel-Gaza conflict alongside its ongoing battle with unionization efforts among baristas.

Starbucks anticipates these adjustments will better align with customer preferences and operational efficiencies, paving the way for future innovations. The changes will officially take place on March 4th.