Seattle, Washington โ Starbucks, the global coffee giant, announced Monday it will cut 1,100 corporate roles and remove 13 drinks from its U.S. menu as part of CEO Brian Niccolโs plan to streamline operations and revive declining sales. The Starbucks layoffs, representing 7% of non-store employees, will focus on corporate โsupport partnerโ roles, while store staff and investments remain unaffected .
Corporate Layoffs: Focus on Efficiency
The cuts, effective Tuesday, target corporate roles deemed redundant or non-essential, with hundreds of open positions also eliminated. In a letter to employees, Niccol emphasized the need to โoperate more efficiently, increase accountability, and reduce complexityโ . Affected workers will receive severance pay, benefits through May 2, and career transition support .
โThis is a necessary step to position Starbucks for future success,โ Niccol said, noting the companyโs size had slowed decision-making .
Menu Overhaul: Fewer Drinks, Faster Service
Starting March 4, Starbucks will remove 13 low-selling or complex drinks, including:
- Espresso Frappuccino
- White Hot Chocolate
- Royal English Breakfast Latte
- Java Chip Frappuccino
The company aims to shrink its menu by 30% by September 2025 to reduce wait times and improve quality . Alternatives for removed items include the Mocha Frappuccino and Green Tea Lemonade .
โWeโre simplifying to focus on fewer, more popular items executed with excellence,โ Starbucks stated .
Financial Performance and Challenges
Starbucksโ global same-store sales fell 2% in fiscal 2024, driven by U.S. customer frustration over rising prices and slow service . The brand faces stiff competition from indie cafes and digital-first rivals. However, shares rose 1% Monday following the announcement, building on a 17% gain since Niccolโs tenure began .
CEO Brian Niccolโs Vision
Niccol, former CEO of Chipotle, joined Starbucks in September 2024 to lead a turnaround. His strategy includes:
- Reintroducing โcommunityโ to stores with seating and self-serve stations.
- Optimizing mobile orders to handle peak traffic.
- Focusing on premium drinks like the cortado and seasonal lavender lineup .
โI want to bring back the soul of Starbucks,โ Niccol said in January .
Impact on Employees and Customers
While corporate staff face layoffs, store employees will see continued hiring for priority roles. Customers may notice faster service but could miss niche drinks. Starbucks promises alternatives for removed items, such as substituting the Java Chip Frappuccino with the Mocha Cookie Crumble Frappuccino .
