Starbucks to cut 1,100 corporate jobs, 30% of menu amid sales decline 

USA – Starbucks has announced plans to lay off over 1,000 corporate employees and streamline its menu by eliminating complex and unpopular drinks as part of a broader effort to reverse declining sales and improve operational efficiency. 

The coffee chain confirmed that it will cut approximately 1,100 corporate positions, including “several hundred” unfilled roles.  

In addition, Starbucks will require vice presidents and higher-level executives to work in its Seattle or Toronto offices at least three times a week as part of its restructuring efforts. 

Alongside the workforce reduction, Starbucks is simplifying its menu, removing 30% of items to focus on higher-performing products.  

The company is eliminating some Frappuccino blended drinks, Royal English Breakfast Latte, and White Hot Chocolate, stating that these items are either rarely ordered, too complex to prepare, or similar to existing menu offerings.  

Starbucks has already discontinued its iced energy drinks and controversial olive oil coffee line. 

The decision to cut menu options aligns with a growing trend in the retail and restaurant industry, where companies are reducing product choices to lower costs and improve efficiency. 

The restructuring comes as Starbucks faces declining sales, marking its fourth consecutive quarter of negative growth.  

In Q1 2025, the company reported a 4 percent drop in global comparable store sales, primarily driven by a 6 percent decline in transactions, offset slightly by a 3 percent increase in average ticket size. 

North America, Starbucks’ largest market, also saw a 4% drop in sales, reflecting an 8 percent decline in customer transactions, with only a partial offset from a 4 percent increase in average order value.  

International markets followed a similar trend, with a 4 percent decline in comparable store sales due to a 2 percent decrease in both transactions and ticket size. 

The turnaround efforts are being led by CEO Brian Niccol, who took over in August 2024 after previously spearheading Chipotle’s revival.  

Niccol, Starbucks’ fourth CEO in two years, has initiated several strategic changes, including a return to the company’s roots as a community-focused coffeehouse rather than an efficiency-driven mobile order hub. 

Niccol recently noted that Starbucks’ heavy reliance on mobile orders had diminished the brand’s identity.  

He is working to restore the in-store experience by reintroducing comfortable seating, self-serve milk and sugar stations, and barista doodles on cups—hallmarks of Starbucks’ early appeal. 

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