Starbucks laying off 1,100 workers and cutting drinks from its menu
February 24, 2025
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Starbucks to lay off 1,000 workers, cut drunks from menu
Starbucks to lay off 1,000 workers, cut drunks from menu
00:24
Starbucks is laying off 1,100 workers, CEO Brian Niccol said in a companywide message that was made public Monday.
The coffee chain is taking the action under its “Back to Starbucks” restructuring plan designed to revitalize the brand, in part by serving in-store customers more quickly.
“This includes the hard decision to eliminate 1,100 current support partner roles and several hundred additional open and unfilled positions,” Niccol said in the memo. “We are simplifying our structure, removing layers and duplication and creating smaller, more nimble teams. Our intent is to operate more efficiently, increase accountability, reduce complexity and drive better integration. All with the goal of being more focused and able to drive greater impact on our priorities.”
The layoffs do not affect in-store retail team members such as baristas and other support staff, Starbucks said. The company said it will inform workers who no longer have jobs on Tuesday.
Which drinks is Starbucks eliminating?
Starbucks is taking other steps to improve its stores’ performance amid a series of quarterly sales declines. That inclues trimming 30% of its beverage and food menu, Niccol said during the company’s first-quarter earnings call last month.
“[W]e are dialing back the menu, both in food and beverage to the tune of roughly 30% between now and the end of our fiscal year, which then frees us up, frankly, to make sure we’ve got what I would call the right food offerings in the morning,” he said.
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The menu changes, which the company hopes will reduce wait times for customers, will come Mar. 4, Starbucks said in an announcement. The retailer is eliminating the following beverages form its menu, which the company says are less popular:
Megan Cerullo is a New York-based reporter for CBS MoneyWatch covering small business, workplace, health care, consumer spending and personal finance topics. She regularly appears on CBS News 24/7 to discuss her reporting.
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