Starbucks Overhauls Menu, Cuts Jobs in Bid to Revitalize Sales

Starbucks is undergoing a major restructuring as it faces declining sales in the US market. The coffee chain is set to eliminate 1,100 jobs and reduce its menu by nearly a third, targeting underperforming items like the Royal English Breakfast Latte and White Hot Chocolate. This strategic move, set to take effect on March 4th, aims to streamline operations, reduce customer wait times, and enhance overall drink quality.

Chief Executive Brian Niccol, who took the helm last year, is steering Starbucks back to its coffeehouse roots amidst ongoing challenges, including complaints about service efficiency and high prices. The decision to streamline the menu reflects a shift from previous strategies that promoted customization.

The company will notify affected employees about job cuts, primarily in corporate positions, while assuring that operational roles at stores will remain intact. Additionally, the cutbacks come as Starbucks faces a decline in customer transactions, with a reported 8% drop in the most recent quarter for stores open at least a year. Amidst recent controversies, including tensions over the Israel-Gaza conflict, Starbucks aims to enhance accountability and efficiency to maintain its competitive edge in a crucial market.