Starbucks, the world’s largest coffee chain, facing ongoing performance struggles, has initiated a round of layoffs.

In an email sent to employees on the 24th, Starbucks CEO Brian Niccol announced plans to reduce the corporate support workforce by 1,100 employees. This reduction does not include store-level staff. As of the end of last year, Starbucks employed 16,000 corporate support workers globally, meaning the layoffs will affect approximately 7% of the total workforce.

The layoffs come amid recent financial difficulties for Starbucks. The company has experienced sales declines for four consecutive quarters, driven by intensifying competition from lower-cost local brands in its two largest markets, the U.S. and China, as well as a boycott stemming from the Israel-Palestinian Hamas conflict.

Recently, Starbucks decided to restrict restroom access in its North American stores to paying customers only, reversing a seven-year policy of keeping stores open to all visitors. The company also plans to reduce its menu by about 30%. Starbucks has already discontinued its olive oil-infused drinks and iced energy drinks, while introducing new items like the Cortado and pistachio-flavored beverages. Additionally, it has eliminated extra charges for non-dairy (plant-based) milk options such as almond, oat, and coconut to attract more customers.

CEO Brian Niccol stated, “The current menu is too complex, leading to longer order times. By simplifying it, we aim to shorten customer wait times and provide better service.”

To enhance the customer experience in U.S. and Canadian stores, Starbucks has reintroduced ceramic cups and brought back self-service condiment bars. The company is also implementing a paid-customer-only policy and introducing a new service where baristas leave handwritten messages to improve the in-store atmosphere.

Niccol added, “We will reduce beverage delivery times to under four minutes and streamline mobile ordering,” revealing that Starbucks is developing a feature in its app to allow customers to specify pickup times.

<Hwandong Cho>