Official layoffs! Starbucks menu begins to "lose weight"

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As previously announced, Starbucks is undergoing a major transformation.

According to ABC News on Feb. 24, Starbucks CEO Brian Nicole announced on Monday that the company will lay off 1100 employees worldwide, hundreds of remaining job openings will no longer be hired, and stores will simultaneously reduce the number of products on the menu in order to reverse the decline in sales.

Brian Nicole said in a letter to employees released on Feb. 24 that the company would notify laid-off employees by noon on Tuesday (February 25) and require them to telecommute throughout the week. In addition, unemployed workers will receive wages and benefits until May 2, followed by severance pay according to their length of service and assistance such as career transformation support.

As for the reasons for the layoffs, he added that the move was to "reduce complexity, increase responsibility and speed up decision-making efficiency". At the same time, "our current structure is too large and there are too many levels of management, which leads to a decline in the efficiency of communication and decision-making." so many positions are just coordinating work and have no actual decision-making power. "

Starbucks currently has more than 16000 employees worldwide, and this round of layoffs account for about 7% of the total, so it will not affect front-line employees such as coffee shops, warehousing, manufacturing, distribution and baking. This adjustment indicates that Starbucks will focus on optimizing its internal management structure and functional levels in order to improve overall operational efficiency.

As part of the restructuring, Starbucks will also close hundreds of vacant jobs. In response, Brian Nicole said in a statement: "I know this news is difficult to accept, but we think it is a necessary change for Starbucks to succeed in the future."

In addition to the layoffs, Starbucks told the media that "we are simplifying the menu as part of the plan." In fact, as early as January this year, Starbucks announced that it would significantly "streamline" the menu in the US market, and expected to reduce its food and beverage options by 30%. Yesterday, the company officially announced that the first round of adjustments will be implemented on March 4.

To make room for new products, Starbucks plans to remove 13 unpopular beverages from all its stores in the United States and Canada, including some flavors of Frappuccino, royal English black tea lattes (Royal English Breakfast Tea Latte) and white hot chocolate (White Hot Chocolate), according to the latest announcement on its website.

Officials also mentioned that they will continue to cut more products in September, before the end of the current fiscal year, until the 30% target is met.

As for the reason for "menu slimming", the official response is that these products are not only low sales, complex production process, but also too similar to existing drinks. Starbucks said consumers can still buy these products in major stores until March 4, after which they will be replaced by a new menu.

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