Starbucks laying off 1,100 workers and cutting drinks from its menu

Daily News Article   —   Posted on February 25, 2025

(CBS and Fox Business) – 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. Employees will be informed of any other changes to employee roles, including responsibilities and reporting structures, by the end of the week.

Niccol informed employees about the layoffs in January, stating that they were part of the “Back to Starbucks” strategy – a series of changes aimed at enhancing the in-store customer experience while improving efficiency.

Starbucks is taking other steps to improve its stores’ performance amid a series of quarterly sales declines. That includes 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.

Niccol, who became CEO in September with plans to return the company to its coffeehouse roots, is working to boost profitability and improve the work environment after the company faced years of growing pressure from unionization campaigns nationwide and consecutive disappointing fiscal quarters as traffic declined.

Niccol said in the message Monday that the layoffs were “a necessary change to position Starbucks for future success.”

Niccol said the company will still hire for positions that fit its new structure and add capacity when needed.

When Niccol took the reins late last year, he announced a number of initiatives to reverse the slump in sales and declining foot traffic, including reducing wait times at cafés to four minutes. He also announced the company would revert cafés back to their former “coffeehouse” aesthetic with “personal touches” like mugs and Sharpies, and bring back the condiment bar.

Part of his immediate strategy included simplifying the coffee chain’s “overly complex menu” to better align with its identity as a coffeehouse company, separating mobile order pickup from the café experience, and fixing its pricing architecture.

Starbucks said in a separate announcement on Monday that it was removing a “selection of less popular beverages” from its menu to reduce wait times and improve quality and consistency.

The drinks being removed include several Frappuccino blended beverages, the Royal English Breakfast Latte and the White Hot Chocolate. Starbucks said the beverages aren’t commonly purchased, can be complex to make or are similar to other drinks on its menu. The changes will begin on March 4.

Niccol also told FOX Business in an exclusive interview in December that he aims to make pricing on its app more transparent.

Compiled from Feb. 24 articles at CBS News and Fox Business. Reprinted here for educational purposes only. May not be reproduced on other websites without permission.