Starbucks is laying off 1,100 employees as part of a major restructuring effort aimed at streamlining operations.
CEO Brian Niccol announced the decision in a companywide message on Monday, stating the move is part of the “Back to Starbucks” plan to improve efficiency and customer service.
He said:
“This includes the hard decision to eliminate 1,100 current support partner roles and several hundred additional open and unfilled positions.
“We are simplifying our structure, removing layers and duplication and creating smaller, more nimble teams.
“Our intent is to operate more efficiently, increase accountability, reduce complexity and drive better integration. All with the goal of being more focused and able to drive greater impact on our priorities.”
The layoffs will not affect in-store retail employees, including baristas and support staff.
Starbucks Cutting 30% of Menu Items
In addition to the layoffs, Starbucks is revamping its menu.
The company plans to remove 30% of its food and beverage offerings to enhance service speed and efficiency.
The changes, first mentioned in a first-quarter earnings call, will take effect on March 4.
Niccol added:
“We are dialing back the menu, both in food and beverage to the tune of roughly 30% between now and the end of our fiscal year, which then frees us up, frankly, to make sure we’ve got what I would call the right food offerings in the morning.”
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Drinks Being Discontinued
Starbucks will eliminate several beverages that the company says are less popular:
- Iced Matcha Lemonade
- Espresso Frappuccino
- Caffe Vanilla Frappuccino
- Java Chip Frappuccino
- White Chocolate Mocha Frappuccino
- Chai Creme Frappuccino
- Caramel Ribbon Crunch Creme Frappuccino
- Double Chocolaty Chip Creme Frappuccino
- Chocolate Cookie Crumble Creme Frappuccino
- White Chocolate Creme Frappuccino
- White Hot Chocolate
- Royal English Breakfast Latte
- Honey Almondmilk Flat White
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A New Era for Starbucks
With declining quarterly sales, Starbucks is betting on a more streamlined operation to turn things around. The company hopes reducing its menu and cutting excess roles will improve efficiency and customer satisfaction.
The coming months will show whether these bold moves will help Starbucks regain momentum in a challenging market.
