Starbucks Cuts 1,100 Jobs and Simplifies Menu for US Comeback

In a move aimed at revitalizing its struggling US market, Starbucks has announced the reduction of 1,100 jobs and a major overhaul of its menu, which will see a third of items removed over the next year. This strategy, confirmed by Chief Executive Brian Niccol, comes after a notable decline in sales and customer dissatisfaction regarding long wait times and pricing. The company will focus on popular drinks and streamline operations to enhance efficiency and quality, emphasizing a return to its coffee house roots.

Starbucks employs more than 360,000 people globally and operates over 40,000 stores, with the US being its largest market. Facing challenges such as barista unionization efforts and external socio-political pressures, Starbucks is making these changes as part of a broader effort to regain customer loyalty and improve operational effectiveness. The first wave of menu cuts will take effect on March 4, with selected drinks already marked for elimination.

The job cuts will primarily impact corporate support roles, with "several hundred" unfilled positions also being eliminated. The company's broader goal is to reduce complexity and enhance accountability, while the latest sales data reveals an 8% decrease in transactions at US locations open for at least a year. This transformative plan signals a shift from the previous focus on customization to a more streamlined product offering, aiming to better align with consumer preferences and Starbucks' foundational identity as a coffee-centric establishment.