An American company that operates the largest coffeehouse chain and one of the most recognisable brands in the world announced the cut of 1,100 jobs as part of its ongoing effort to streamline operations and increase overall efficiency. The coffee giant decision comes as it looks to restructure its corporate workforce to better align with its long-term business goals and adapt to changing market demand.
The layoff primarily affects corporate jobs. According to the agency report, the job cuts represent nearly 7 per cent of firms’ global workforce outside company-owned stores.
Starbucks CEO Brian Niccol announced the restructuring plans amid declining sales for the coffeehouse chain. “I recognise the news is difficult. We believe it’s a necessary change to position Starbucks for future success.”
Considering the fewer sales, the company also decided to alter its menu and remove over a dozen drinks from the menu on March 14.
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By the end of the fiscal year in September, Starbucks will eliminate about 30% of its menu. “As part of our plan to get back to Starbucks, we’re simplifying our menu to focus on fewer, more popular items, executed with excellence.”
“This will make way for innovation, help reduce wait times, improve quality and consistency, and align with our core identity as a coffee company,” the coffee chain added. Below is the list of the 13 drinks leaving the menu and their respective alternatives, per the outlet:
Sr. No. | Drink To Remove | Substitute Drink |
1 | Iced Matcha Lemonade | Green Tea Lemonade, |
2 | Espresso Frappuccino | Coffee Frappuccino |
3 | Caffè Vanilla Frappuccino | Coffee Frappuccino with a pump of syrup |
4 | White Chocolate Mocha Frappuccino | Mocha Frappuccino |
5 | Java Chip Frappuccino | Mocha Cookie Crumble Frappuccino |
6 | Chai Crème Frappuccino | Vanilla Bean Frappuccino |
7 | Caramel Ribbon Crunch Crème Frappuccino | Vanilla Bean Frappuccino |
8 | Double Chocolaty Chip Crème Frappuccino | Vanilla Bean Frappuccino |
9 | Chocolate Cookie Crumble Crème Frappuccino | Vanilla Bean Frappuccino |
10 | White Chocolate Crème Frappuccino | Vanilla Bean Frappuccino |
11 | White Hot Chocolate | Hot Chocolate with Mocha or White Chocolate Mocha sauce |
12 | Royal English Breakfast Latte | London Fog Latte |
13 | Honey Almond Milk Flat White | Flat White |
With this list, the company also mentioned that the job cuts would not affect people working in the cafes, warehousing, manufacturing, distribution and roasting operations. The coffeehouse chain also said that the corporate employees who are losing their jobs will get pay and benefits until May 2, 2025.
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Besides this, Starbucks will also mandate employees to work from Seattle or Toronto offices three days a week. However, employees at the director level or below can work remotely, while hiring for future roles will require them to work from either of the two offices.