Starbucks has not had a great time of it lately, so this announcement isn’t too surprising. Bloomberg reports that the coffee giant will eliminate 350 positions from its Seattle headquarters, mostly cutting from the top: Some of the possible departments mentioned by CEO Kevin Johnson that may see significant changes include “marketing, creative, product, technology and store development.”
Starbucks has previously said that sales in formerly popular drinks like Frappuccinos are down, as consumers looks elsewhere for healthier options. Recent novelty drinks have failed to take off like the Unicorn Frappuccino once did.
Still, a push toward innovation and new menu items has helped Starbucks stock surge 18 percent this year, and this latest news should bolster Starbucks’ public commitment to get the company on a more profitable track. To that end, Bloomberg noted that Starbucks announced last month it will streamline its European corporate operations as well, and is also experimenting with delivery vis UberEats.