Key takeaways:

• Starbucks is cutting 1,100 corporate jobs and eliminating 13 drinks from its menu.
• The company aims to simplify operations and enhance customer service amid sales declines.
• Changes to the menu are effective March 4 and aim to reduce wait times and improve quality.

Coffee giant Starbucks is undergoing significant changes as it seeks to revive its declining business. As part of a broader turnaround strategy, the company will eliminate 1,100 corporate jobs and remove 13 less popular drinks from its menu, marking a shift towards streamlined operations. According to a representative, this decision is inspired by a need to simplify menu offerings, which the company describes as crucial for enhancing both quality and efficiency.

CEO Brian Niccol, who took leadership last year, emphasized the importance of returning Starbucks to its core identity as a coffee company. "As part of our plan to get back to Starbucks, we're simplifying our menu to focus on fewer, more popular items, executed with excellence," he stated in a recent announcement. The beverages slated for removal include the Iced Matcha Lemonade, White Hot Chocolate, and various Frappuccino flavors like the Caffè Vanilla Frappuccino and Java Chip Frappuccino, which were often viewed as complex to produce or redundant. Changes will come into effect on March 4, and customers are encouraged to try alternative beverages that will remain available.

Starbucks is planning to reduce its overall menu by approximately 30% through a progression of cuts over the next year, a reflection of the company’s long-standing struggle with declining sales, particularly in the U.S. market. Recent reports underscore a concerning trend with an 8% drop in transactions at U.S. stores. To bolster its position, Starbucks aims to not only remove underused items but also to enhance service speed and product quality.

According to CBS News, industry experts see these adjustments as a proactive measure. Peter Cohan, an associate professor of management at Babson College, noted that while these steps are beneficial, they alone may not suffice to restore unwavering customer confidence and sales growth.

The corporate layoffs will specifically impact "support partner" roles and will not affect Starbucks' store employees, as outlined in BBC's coverage. Starbucks' focus will now be on reclaiming its status in the competitive landscape of coffee culture, seeking to reduce long wait times and ensure popular offerings align closely with customer expectations.

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