Starbucks will reduce its workforce and simplify its menu to revive its business

Starbucks has announced that it will lay off more than 1,000 corporate workers and reduce its menu by eliminating some complex and unpopular drinks, all as part of an effort to reverse the decline in sales and revitalize the coffee chain.

Among the drinks being removed are some Frappuccino options, the Royal English Breakfast Latte, and the White Hot Chocolate. These changes aim to simplify operations and reduce the variety on the menu.

The company explained in a statement that these drinks are not frequently purchased, are complicated to prepare, or are similar to other options available on the menu. Additionally, Starbucks will reduce 30% of its offerings in an attempt to streamline its processes. Iced energy drinks and the controversial olive oil coffee have already been removed.

The reduction in options is also a trend followed by other restaurants and retailers to reduce costs and focus on more profitable products.

Starbucks' sales have declined for four consecutive quarters, marking the longest slump in years. Factors such as high prices, long wait times, and the increasing number of stores that have voted to unionize due to labor conditions and wages have affected the brand.

More than 30% of orders now come from customers using the mobile app to place their order and then pick it up, which has complicated operations during peak hours.

In addition to the menu cuts, Starbucks will eliminate approximately 1,100 corporate positions. The company will also reduce several hundred vacant positions and require employees in vice president positions or higher to work from the offices in Seattle or Toronto at least three times a week.

This restructuring comes under the leadership of Brian Niccol, who became CEO in August 2024. Niccol, formerly of Chipotle and known for his ability to revitalize struggling chains, has set out to implement an ambitious plan to bring Starbucks back to its roots. According to Niccol, the company has focused too much on mobile orders, which has "stripped much of the soul" from the brand. His vision is to return Starbucks to its origins as a "community café" with comfortable spaces, rather than being a business focused exclusively on quick to-go orders.

Niccol has also revived a company tradition, where baristas decorate cups with drawings, as well as installing self-service stations for milk and sugar.