Starbucks Streamlines Menu and Cuts Jobs to Revive US Sales

In a strategic move to boost sales and enhance service, Starbucks has announced it will cut jobs and simplify its menu by eliminating several drink options. The decision comes as the company faces declining sales and customer complaints regarding long wait times and high prices.

Starbucks will cut approximately 1,100 jobs, primarily affecting corporate support roles, and aims to reduce its menu items by nearly a third over the next year. Among the drinks being eliminated are the Royal English Breakfast Latte, White Hot Chocolate, and various blended frappuccinos. The company stated its menu simplification, effective March 4, is intended to focus on top-selling items, improve quality, and reduce complexity in the preparation process. Chief Executive Brian Niccol, previously with Chipotle, aims to realign Starbucks with its identity as a coffee house. The company has seen a 8% drop in transactions at US stores compared to last year, further emphasizing the need for effective changes.

In addition to job reductions, Starbucks will also eliminate several hundred open positions to streamline operations. The firm currently has over 360,000 employees and manages more than 40,000 stores globally. Efforts to unionize among baristas and ongoing controversies surrounding the Israel-Gaza situation have posed challenges for the brand. Starbucks aims to improve accountability and drive better integration through these changes, as it navigates the complexities of the current market.