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Starbucks axes 1,100 jobs in bid for US turnaround

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grey placeholderGetty Images Cup reusable for sale at Starbucks Café in Albani, New York, United States, on Tuesday, January 30, 2024.Gety pictures

Starbucks cuts 1,100 jobs and simplifies its list in the United States as it tries to improve business in the local market.

The first items for getting the Iftah Lati ax include English, white hot chocolate and several types of mixed frappuccinos.

But Starbucks said that more offers will be cut, as it aims to reduce its list by about a third during the next year, hoping to reduce waiting times and improve quality and consistency.

The company has been struggling with a continuous decrease in sales since last year, which was particularly evident in the United States.

CEO Brian Nicole, who was previously headed by a series of Mexican food foods, was brought to Starbucks last year to help the heart of work.

He said he wanted to see the company returning to its roots as a coffee.

Starbucks said that the beverages that were appointed to the cutting block “have not been commonly purchased, could be complicated, or resemble other drinks in our list.” The changes are scheduled to enter into force on March 4.

“We are simplifying our list to focus on fewer elements, which are implemented,” the company said on Monday.

“This will give way to innovation, and help reduce waiting times, improve quality and consistency, and comply with our basic identity as a coffee company.”

The company said that the job cuts announced on Monday focus on the “support partner” roles for companies and will not affect jobs or investments in stores.

The company said it would inform the employees affected by the decisions by midday on Tuesday. It also eliminates “several hundreds” open and indifferent situations.

“Our intention is to work more efficiently, increase accountability, reduce complexity and push integration better,” said Mr. Nicole in the ad.

Starbucks employs more than 360,000 people and runs or licenses more than 40,000 stores all over the world.

The United States is the largest and most important market, but its brand there has suffered in recent years, as customers complained about long waiting times and high prices, and the company wrestled with Paristas, which is trying to unite.

The company has also been involved in discussions about the Israel-Gaza war, as it faces boycott calls from both the pro-Israeli camps and the two filters, despite the company’s efforts to stay neutral.

The company said last month that the transactions in American stores open for at least a year, decreased by 8 % in the last quarter, compared to the same previous period.

The drive to simplify the list is a transformation from previous strategies, which confirmed personal beverages.

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2025-02-25 06:58:00

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