Starbucks to lay off 1,100 workers and cut these 13 drinks amid lackluster sales

Starbucks plans to lay off 1,100 corporate employees and eliminate hundreds of open and unfilled positions, CEO Brian Niccol said on Monday.

In a memo, Niccol said the cuts will remove duplication “to create smaller, more nimble teams,” and the company will inform employees who are being laid off by midday Tuesday. Starbucks, which has 16,000 corporate employees, said the cuts will not affect staff at cafés.

“We believe it’s a necessary change to position Starbucks for future success,” Niccol said in the statement. “Our intent is to operate more efficiently, increase accountability, reduce complexity, and drive better integration.”

Shares of the coffee giant (NASDAQ:SBUX) rose nearly 2% on the news in midday trading Monday.

Like many fast-food chains and retail stores, Starbucks has been struggling with declining in-store sales as customers are less interested in the chain’s high-priced drinks. The cuts come just one month after the Seattle-based coffee chain reversed its popular open-door policy, which allowed anyone to sit in its cafés or use the bathroom without making a purchase.

Last week, Niccol told the Wall Street Journal he plans to speed up wait times and improve mobile ordering.

He also said Starbucks will be offering smaller menus in the future. According to Today.com, starting March 4, these 13 drinks will be off Starbucks’s menu:

• Iced Matcha Lemonade
• Espresso Frappuccino
• Caffè Vanilla Frappuccino
• White Chocolate Mocha Frappuccino
• Java Chip Frappuccino
• Chai Crème Frappuccino
• Caramel Ribbon Crunch Crème Frappuccino
• Double Chocolaty Chip Crème Frappuccino
• Chocolate Cookie Crumble Crème Frappuccino
• White Chocolate Crème Frappuccino
• White Hot Chocolate
• Royal English Breakfast Latte
• Honey Almondmilk Flat White

The chain will instead focus on customer favorites like the new Cortado and will be bringing back the Iced Cherry Chai and Jalapeño Chicken Pocket this spring.