The move by Starbucks is in line with new CEO Brian Niccol’s announcement on January
Starbucks announced on Monday that it is laying off 1,100 corporate jobs, marking one of its biggest job cuts in the coffee giant’s history.
The move aligns with new CEO Brian Niccol’s recent strategy to reverse four consecutive quarters of declining global and US sales.
Starbucks will also reduce 30% of its menu, letting go of Frappuccinos, Royal English Breakfast Lattes, White Hot Chocolate and olive oil coffees, by September.
Niccol aims to refine Starbucks’ most profitable items and restore its identity as a “community coffeehouse” with cozy seating.
The company is also shifting focus away from mobile ordering, which currently accounts for over 30% of transactions. Long wait times and high prices have contributed to customer dissatisfaction.
Meanwhile, labor tensions persist as hundreds of stores have voted to unionize, citing concerns over pay and working conditions.