Starbucks is making significant cuts to its workforce, laying off over 1,000 corporate employees and streamlining its operations. The announcement was made by CEO Brian Niccol on Monday in a letter sent to employees stating that  Starbucks needs to “simplify [its] structure, remove layers and duplication, and create smaller, more nimble teams,” according to Reuters. Alongside these layoffs, the coffee giant is also eliminating several beverages from its menu in an effort to sharpen its focus and reduce operational complexity. 

According to Starbucks, Niccol was appointed Chairman and Chief Executive Officer of Starbucks on September 9, 2024. Niccol has taken charge with a clear vision to refocus the company on its coffeehouse origins. As stated by Fox News, since Niccol has stepped into the role, he has prioritized boosting profit and improving the workplace culture, especially after facing increased pressure from nationwide unionization efforts and series of underwhelming final quarters marked by declining customer traffic. Niccol’s leadership marks a shift as he works to address these challenges and steer the company toward long-term prosperity. 

Niccol further announced in the letter that the company’s aim is to “operate more efficiently, increase accountability, reduce complexity and drive better integration.” He also emphasized that its goal is to be “more focused and able to drive greater impact on [its] priorities.” He described the layoffs as “a necessary change to position Starbucks for future success.” Affected employees received additional information on Tuesday. This layoff does not signal an end to hiring at Starbucks. According to Fox News, Niccol stated that the company plans to bring in new talent when necessary to meet its evolving needs and strengthen key areas. 

As reported by The New York Times,“the cuts will affect nearly 7 percent of the company’s 16,000 employees who work outside company-owned stores; baristas are not included.” This means the layoffs will primarily target corporate employees excluding those who work directly with customers in Starbucks locations. The company’s decision to downsize its corporate workforce reflects an ongoing effort to streamline operations and create a more efficient structure. Despite these cuts, Starbucks is focused on maintaining its customer-facing terms and improving its overall business from what it was before. 

In addition to the layoffs, Starbucks is also simplifying its menu as part of a broader effort to reduce cost and streamline operations. According to CNN, in total, Starbucks is trimming 30% of its menu because some of its drinks are difficult to make and are often repetitive. According to CBS News, as of now, Starbucks is removing these 13 drinks from their menu: Iced Matcha Lemonade, Espresso Frappuccino, Caffè Vanilla Frappuccino, Java Chip Frappuccino, White Chocolate Mocha Frappuccino, Chai Crème Frappuccino, Caramel Ribbon Crunch Crème Frappuccino, Double Chocolaty Chip Crème Frappuccino, Chocolate Cookie Crumble Crème Frappuccino, White Chocolate Crème Frappuccino, White Hot Chocolate, Royal English Breakfast Latte, and Honey Almond Milk Flat White. 

According to CTV News, Niccol admitted that there is “still room for improvement” but remains confident in the company’s progress. 

“We plan to simplify “Starbucks’ overly complex menu to better align with its coffee house identity,” he said. “We’ve been focused on simplifying our menu to position partners for success, improve consistency, drive customer satisfaction, and enhance our economics.”

Niccol also mentioned that Strabucks plans to innovate in a more focused way, bringing fewer but higher-quality food and beverage offerings that reflect the company’s premium positioning.