Starbucks to axe 1100 employees, shrinks Canada menu

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Starbucks will lay off 1100 employees globally as part of its ‘Back to Starbucks’ plan. (Source: Starbucks)

Starbucks will lay off 1100 employees globally as part of its ‘Back to Starbucks’ plan that aims to restore profitability.

“The leadership team has finished that work, and this week, we will communicate the changes we’re making,” said Starbucks CEO Brian Niccol in a letter to employees.

“This includes the hard decision to eliminate 1100 current support partner roles and several hundred additional open and unfilled positions.”

Niccol said that the move aims to make operations more efficient, increase accountability, and reduce complexity.

The announcement comes a month after Niccol said the coffee chain would need to eliminate an unspecified number of roles in line with the ‘Back to Starbucks’ strategy.

Niccol said that Starbucks is committed to supporting the affected employees, which includes providing them with a “comprehensive” severance package.

In a separate statement, the company also said it will remove less popular beverages from its store menu in Canada, including several Frappuccino blended beverages, the Royal English Breakfast Latte and the White Hot Chocolate, from March 4.

Further items will be removed from the Canadian food and beverage menu over the coming months, with about 20 per cent eliminated by the end of the fiscal year.

“These items aren’t commonly purchased, can be complex to make, or are like other beverages on our menu,” said Starbucks.

“This will make way for innovation, help reduce wait times, improve quality and consistency, and align with our core identity as a coffee company.”

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