In a bid to revive its struggling operations in the US market, Starbucks has announced plans to cut 1,100 jobs and simplify its menu by nearly a third, aiming to enhance customer experience and operational efficiency. The cuts will largely impact corporate support roles and are part of a broader strategy to return to the company's coffee-centric roots, following significant declines in sales and operational challenges over the past year.
Starbucks Announces Major Job Cuts and Menu Simplification in Turnaround Effort
Starbucks Announces Major Job Cuts and Menu Simplification in Turnaround Effort
Starbucks is set to eliminate 1,100 jobs and streamline its menu in the US to enhance business performance amidst declining sales.
Starbucks is aiming to streamline its offerings by eliminating drinks like the Royal English Breakfast Latte, and White Hot Chocolate, which the company describes as less frequently purchased or complicated to prepare. With CEO Brian Niccol, previously with Chipotle, at the helm since last year, Starbucks seeks to improve customer satisfaction by reducing wait times and ensuring better consistency in product quality.
The new measures are to be implemented on March 4, intended to allow for innovation in popular drinks. The company has reported an 8% drop in transactions at US stores over the past quarter compared to last year and is facing challenges, including customer complaints regarding pricing, service time, and ongoing unionization efforts among baristas. Furthermore, controversial societal issues and political sentiments related to current events have also impacted the brand’s reputation. Starbucks plans to inform affected employees by mid-day on Tuesday, as it restructures its workforce to operate more effectively amidst these challenges.
The company remains the largest specialty coffee retailer, employing over 360,000 staff and operating more than 40,000 stores globally, with the US remaining its critical market.
The new measures are to be implemented on March 4, intended to allow for innovation in popular drinks. The company has reported an 8% drop in transactions at US stores over the past quarter compared to last year and is facing challenges, including customer complaints regarding pricing, service time, and ongoing unionization efforts among baristas. Furthermore, controversial societal issues and political sentiments related to current events have also impacted the brand’s reputation. Starbucks plans to inform affected employees by mid-day on Tuesday, as it restructures its workforce to operate more effectively amidst these challenges.
The company remains the largest specialty coffee retailer, employing over 360,000 staff and operating more than 40,000 stores globally, with the US remaining its critical market.
