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10M ago

Starbucks Cuts 1,100 Jobs and Simplifies Menu for Turnaround

Starbucks is laying off 1,100 corporate employees while aiming to simplify its menu by nearly a third to boost efficiency and sales.

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Overview

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Starbucks is cutting 1,100 corporate jobs and plans to eliminate several hundred open positions in its effort to revitalize slumping sales. CEO Brian Niccol, who joined last September, is focusing on simplifying the menu by nearly a third over the next year, starting March 4, with popular items like the Royal English Breakfast Latte and White Hot Chocolate among those being removed. This move aims to enhance efficiency and customer experience amidst a decline in same-store sales, which were down 8% last quarter. The job cuts will not affect café staff but will streamline support roles.

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Starbucks is laying off 1,100 corporate employees as part of its 'Back to Starbucks' restructuring plan to simplify its structure, remove duplication, and create more efficient teams. This aims to increase accountability and reduce complexity within the company.

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Starbucks is eliminating several menu items, including the 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, and Honey Almondmilk Flat White.

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No, the layoffs will not affect café staff such as baristas and other in-store support staff. The cuts are focused on corporate support roles.

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The goal of simplifying the menu is to enhance efficiency, reduce wait times for customers, and improve the overall customer experience by focusing on more popular items.

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