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3mo ago

Starbucks Cuts 13 Drinks and 1,100 Corporate Jobs in Streamlining Effort

The coffee chain's menu overhaul and layoffs are part of its 'Back to Starbucks' plan to improve efficiency and address declining sales.

A costumer exits a Starbucks store in Oakland, Calif., Jan. 16, 2025. Starbucks has announced staff layoffs and that some drinks are leaving the menu March 4. 
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A Starbucks Coffee sign on Thursday, Jan. 16, 2025, in Houston. (AP Photo/Ashley Landis)
Starbucks headquarters in Seattle. (GeekWire Photo / Kurt Schlosser)

Overview

  • Starbucks will remove 13 less popular drinks from its menu starting March 4, including several Frappuccinos, the Royal English Breakfast Latte, and White Hot Chocolate.
  • The menu reduction is part of a broader effort to simplify operations, reduce wait times, and improve product quality and consistency.
  • The company plans to cut about 30% of its food and beverage menu items by the end of fiscal year 2025 to make room for new innovations.
  • CEO Brian Niccol announced 1,100 corporate layoffs globally, alongside a hiring freeze for hundreds of open positions, as part of restructuring efforts.
  • The changes follow a challenging 2024 for Starbucks, which saw U.S. sales decline and operating income drop by 22% year-over-year in the first fiscal quarter of 2025.