Starbucks slashes corporate jobs, menu items to streamline operations

Starbucks has announced plans to eliminate 1,100 corporate positions and remove 13 beverages from its menu as part of a significant restructuring effort under CEO Brian Niccol. 

The layoffs, representing about 7% of the company’s 16,000 corporate employees, aim to streamline operations and enhance efficiency. Frontline staff, including baristas and store employees, will not be affected by these cuts. 

In a letter to employees, Niccol stated: “We are simplifying our structure, removing layers and duplication, and creating smaller, more agile teams.” Affected employees will be notified by midday on Tuesday (US time). 
 

As of 2024, Starbucks had some 361,000 employees globally, with around 211,000 in the US and 150,000 elsewhere.

Niccol, who assumed leadership of Starbucks in September last year after a successful tenure at Chipotle Mexican Grill, introduced the “Back to Starbucks” strategy to revitalise the brand amid declining sales. Since his appointment, Starbucks’ shares have risen by over 22%, after falling by 40% since its peak in 2021 due to weaker demand in key markets like the US and China. 
 

As part of the restructuring, Starbucks will also discontinue 13 less popular beverages as of March 4, to simplify the menu and reduce wait times. The discontinued items include: 

• Iced Matcha Lemonade
• Espresso Frappuccino
• Caffè Vanilla Frappuccino
• White Chocolate Mocha Frappuccino
• Java Chip Frappuccino
• Chai Crème Frappuccino
• Caramel Ribbon Crunch Crème Frappuccino
• Double Chocolaty Chip Crème Frappuccino
• Chocolate Cookie Crumble Crème Frappuccino
• White Chocolate Crème Frappuccino
• White Hot Chocolate
• Royal English Breakfast Latte
• Honey Almond Milk Flat White

This move is part of a broader plan to reduce the menu by about 30% by the end of September 2025, allowing for the introduction of new products and improving operational efficiency.