Starbucks reduces 1,100 jobs and simplifies its now menu in the US because it tries to improve the marking business in its home market.
The first objects for obtaining the ax includes the royal English breakfast Latte, white hot chocolate and several types of mixed frappuccinos.
But Starbucks said that more offers would be reduced, as it aims to reduce its menu by nearly a third over the next year, hoping to reduce the waiting time and improve quality and consistency.
The company is struggling with a permanent fall in sales from last year, which is especially pronounced in the United States.
CEO Brian Niccol, who had previously led the Mexican food chain of Chipotla, was brought to Starbucks last year to help the reverse.
He said he wanted to see the company back to the roots as a cafe.
Drinks set up for a chopping block “have not usually been bought, they can be stacked for making or are like other drinks on our menu,” Starbucks said. Changes should take effect on March 4.
“We simplify our menu to focus on smaller, more popular items made with excellence,” the company announced on Monday.
“This will allow innovation, help reduce the waiting time, improve quality and consistency and align with our fundamental identity as a coffee company.”
The reduction of jobs announced on Monday is focused on the corporate role of “Support partner” and will not affect jobs or investment in stores, the company said.
The company announced that it would inform the staff hit by decisions by the middle of the day on Tuesday. It also eliminates “several hundred” open and unfulfilled positions.
“Our intention is to act more effectively, increase responsibility, reduce complexity and encourage better integration,” Mr Niccol wrote in the announcement.
Starbucks employs more than 360,000 people and controls or licensed more than 40,000 stores around the world.
Now his biggest and most important market is his brand, but his brand has suffered there in recent years because customers have complained about a long waiting time and high prices, and the company has struggled with baristas trying to trade unions.
The company was also involved in discussions about the war of Israel-Gaza, confronted with boycott calls from both pro-exhale and pro-Palestinian campsites, despite the efforts of the company to remain neutral.
Last month, the company said that transactions in US stores opened at least a year in the last quarter by 8%, compared to the same period a year earlier.
The simplification of the menu indicates a shift from previous strategies, which emphasized personalized drinks.
