SEATTLE (dpa-AFX) - Starbucks is embarking on a comprehensive transformation as it confronts a sustained decline in sales and evolving consumer preferences. The renowned coffeehouse announced plans to simplify its menu by discontinuing a range of intricate and less favored beverages, including select Frappuccino blends, the Royal English Breakfast Latte, and White-Hot Chocolate.
This measure, following earlier removals of iced energy drinks and olive oil coffees, aligns with an industry-wide shift toward operational efficiency by focusing on core, high-demand products.
In parallel with its culinary revamp, the company revealed a strategic reduction in its corporate workforce, targeting approximately 1,100 global positions.
Additionally, Starbucks will cancel several hundred open roles and mandate that senior executives work from its Seattle or Toronto offices at least three days per week.
These decisive actions come amid the company's longest period of declining sales in years-a downturn attributed partly to customer grievances over escalating prices, prolonged wait times, and mounting labor unrest as unionization efforts gain momentum.
Under the leadership of new CEO Brian Niccol, recruited from Chipotle last fall, Starbucks is undertaking a radical turnaround. Niccol's vision is to reestablish the brand as a community-centric coffee haven rather than merely a quick-service outlet.
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