Starbucks Is Laying Off 1,100 Corporate Workers and Dropping More Menu Items

Starbucks is laying off about 1,100 corporate employees. According to an email from the coffee retailer, additional cut positions will include current support partners. “Several hundred” open and unfilled job roles will also be eliminated.

“We are simplifying our structure, removing layers and duplication and creating smaller, more nimble teams,” said CEO Brian Niccol, per Reuters. “Our intent is to operate more efficiently, increase accountability, reduce complexity and drive better integration.”

Workers at store locations, such as baristas, are not targeted in the current round of layoffs. Presently, Starbucks has about 16,000 corporate employees around the world.

Those impacted by the layoffs will be notified on Tuesday. Moving forward, the company is also requiring senior management, vice president levels or higher, to visit the Seattle or Toronto corporate offices three times a week at a bare minimum.

The Starbucks layoffs were previously revealed in January, but few details were provided other than that they would be corporate positions. Niccol noted that the coffee giant had “too many layers” at the time.

More Starbucks Menu Items Being Removed

On top of the layoffs, the chain’s menu items that “aren’t commonly purchased, can be complex to make, or are like other beverages” are being eliminated. White Hot Chocolate, Royal English Breakfast Latte, and several Frappuccino blended drinks will soon be gone from Starbucks’ menu, according to CNN.

The item cuts amount to about one-third of current options. Some items, like iced energy beverages and olive oil coffee, have already disappeared from menus.

For several quarters in a row, Starbucks saw sales slip as customers were tired of long lines for over-priced drinks. With declining customer traffic and flat revenue, the company’s changes are a part of Niccol’s strategic turnaround plan.

According to Niccol, Starbucks lost its appeal by focusing too much on mobile orders and rushing customers out of the door. The former Chipotle CEO and fourth Starbucks CEO wants to bring the company back to its roots as a gathering place to enjoy good coffee and a sense of community. Also returning to Starbucks are customized, handwritten messages on cups from baristas as well as milk and sugar stations, previously removed from locations.