Starbucks is undergoing significant changes to its menu and workforce as it seeks to revitalize its business in the United States. The company has announced that it will be cutting 1,100 jobs and simplifying its menu offerings. This decision comes in response to a decline in sales that has persisted since last year, particularly in the US market. Among the first items to be removed from the menu are the Royal English Breakfast Latte, White Hot Chocolate, and various blended frappuccinos. Starbucks aims to reduce its menu by nearly one-third over the next year, believing that this will help decrease wait times for customers and enhance the overall quality and consistency of its products. The CEO of Starbucks, Brian Niccol, who previously led the Mexican food chain Chipotle, was brought in last year to help turn the company around. He has expressed a desire to return Starbucks to its roots as a coffee house. The company stated that the drinks being cut were not frequently purchased, were complicated to prepare, or were similar to other beverages already available on the menu. The changes are set to take effect on March 4. In a statement, Starbucks said, 'We are simplifying our menu to focus on fewer, more popular items, executed with excellence. ' This strategy is intended to pave the way for innovation, reduce wait times, improve quality and consistency, and align with Starbucks' core identity as a coffee company. The job cuts announced will primarily affect corporate 'support partner' roles and will not impact jobs or investments at the store level. Starbucks has committed to informing affected employees by midday on Tuesday and is also eliminating several hundred open and unfilled positions. Brian Niccol emphasized the need for the company to operate more efficiently, increase accountability, reduce complexity, and drive better integration. Starbucks employs over 360,000 people and operates or licenses more than 40,000 stores globally. While the US remains its largest and most crucial market, the brand has faced challenges in recent years, with customers expressing dissatisfaction over long wait times and high prices. Additionally, the company has dealt with baristas attempting to unionize. Starbucks has also found itself in the midst of controversy regarding the Israel-Gaza war, facing boycott calls from both pro-Israel and pro-Palestine groups, despite its efforts to maintain a neutral stance. Last month, the company reported that transactions at US stores open for at least a year had decreased by 8% in the most recent quarter compared to the same period last year. The move to simplify the menu represents a shift from previous strategies that emphasized personalized drinks.
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