Starbucks to cut 13 drinks from menu amid restructuring
Starbucks is removing 13 drinks from its menu, effective March 4, as part of a restructuring plan to streamline operations and improve service. The cuts aim to reduce wait times, simplify operations and make way for innovation.
The discontinued drinks include several Frappuccino beverages, the Royal English Breakfast Latte and the White Hot Chocolate.
The menu cuts are part of Starbucks’ broader turnaround efforts under CEO Brian Niccol, aimed at enhancing quality, consistency and operational efficiency.
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Starbucks will remove some of its “less popular” items from the menu starting next Monday, March 4. The decision comes amid a company-wide restructuring plan to streamline operations and improve service.
Among the 13 items pulled are several Frappuccino beverages, the Royal English Breakfast Latte and the White Hot Chocolate. The company announced the menu cuts along with plans to lay off more than 1,000 corporate employees.
Starbucks said the move will help reduce wait times, simplify operations and “make way for innovation.” The company also plans to cut additional food and beverage items in the coming months, ultimately reducing its menu by 30% by the end of the 2025 fiscal year.
What drinks will get the ax?
Starbucks will discontinue the following beverages:
Iced Matcha Lemonade
Espresso Frappuccino
Caffè Vanilla Frappuccino
Java Chip Frappuccino
White Chocolate Mocha 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
Starbucks has recommended alternatives for customers. For example, it suggests that those who enjoyed the Iced Matcha Lemonade try the Green Tea Lemonade, which will remain on the menu.
Customers who preferred the Royal English Breakfast Latte are encouraged to try the London Fog Latte, which has similar flavor notes.
Why is Starbucks making these changes?
Starbucks said the decision to cut menu items is driven by efficiency and customer trends. A company spokesperson said the changes will help the chain focus on “fewer, more popular items, executed with excellence.”
The company cited redundancy in its offerings, saying that some of the discontinued drinks were complex to make and too similar to more popular options.
The menu cuts align with Starbucks’ ongoing efforts to improve quality and consistency across its locations.
How does this fit into Starbucks’ restructuring plan?
The menu changes are part of Starbucks’ larger turnaround efforts under CEO Brian Niccol, who took over in August. In addition to the beverage cuts, the company announced the layoffs of 1,100 corporate employees as it seeks to operate more efficiently.
Peter Cohan, an associate professor of management at Babson College, said the move is a step toward improving Starbucks’ operational flow but is unlikely to resolve the company’s ongoing challenges fully.
Will Starbucks add new drinks to the menu?
Despite the cuts, Starbucks said it will continue introducing new beverages and seasonal offerings. The company recently added a Cortado to its lineup and plans to launch an Iced Cherry Chai in the spring.
With additional menu reductions expected in the coming months, Starbucks hopes that a simpler, more focused approach will help it regain momentum after several quarters of declining sales.
The Trump administration launches a new registry for undocumented immigrants in the U.S., and those who don’t register could face legal consequences. And a Southwest flight suddenly climbed back to 3,000 feet while attempting to land at Chicago’s Midway Airport. These stories and more highlight your Unbiased Updates for Wednesday, Feb. 26, 2025.
The Trump administration created a registry for undocumented immigrants. It will require migrants in the country illegally to submit their personal information or face fines or prison time.
The Department of Homeland Security said all undocumented immigrants 14 and older must submit their fingerprints and home addresses for the registry. Those who qualify but don’t register could be fined up to $5,000 or be sentenced to up to six months in prison.
The administration said the registry will be available online, though the web page has not yet launched.
In a statement, DHS Spokesperson Tricia McLaughlin said, “President Trump and Secretary [Kristi] Noem have a clear message for those in our country illegally: leave now. If you leave now, you may have the opportunity to return and enjoy our freedom and live the American dream.”
The move to criminalize being in the U.S. illegally marks another significant policy change under the Trump administration. Until now, being in the country illegally was only considered a civil offense with the consequences of getting detained and deported if caught and processed.
In a post on X, DHS said America’s borders are now closed to lawbreakers and that this past weekend, crossings along the southern border were at their lowest in 15 years.
House Republicans pass budget resolution
In a big win for Speaker Mike Johnson, House Republicans passed a multitrillion-dollar plan to address defense, energy, immigration and tax policy with only two votes to spare on Tuesday night, Feb. 25.
The vote was a critical step toward unlocking reconciliation, a complicated legislative tool allowing Republicans to avoid a filibuster from Democrats in the Senate.
The Senate has already passed its own budget reconciliation plan. Now, the two chambers must pass the same bill to advance.
Straight Arrow News Political Correspondent Ray Bogan revealed what’s in the budget blueprint and what Republican holdouts said about the resolution here.
Zelenskyy will sign minerals deal Friday, Trump says
The U.S. and Ukraine have reportedly reached a deal that would give America access to the Eastern European nation’s rare minerals.
Trump insisted that Ukraine repay the billions of dollars in economic aid and military equipment it has received from the U.S. during its war against Russia over the past three years. One of those demands included U.S. access to rare earth minerals in Ukraine.
Ukrainian senior officials have confirmed to news outlets that the two nations reached an agreement on the framework of an economic deal. At the White House on Tuesday, Feb. 25, Trump said Ukrainian President Volodymyr Zelenskyy would likely travel to Washington later this week to finalize the deal.
“I hear that he’s coming on Friday,” Trump told reporters. “It’s okay by me if he would like to. We could sign it together. I understand that it’s a big deal, a very big deal, and I think if you look at the American people, they are very happy. You look at polling, Biden was throwing money around like it was cotton candy. And it’s a very big deal. It could be a trillion-dollar deal. It’s rare earth and other things.”
Reports indicated that the U.S. and Ukraine will jointly own a fund, with Ukraine contributing 50% of state-owned resources, which include minerals, oil and gas.
On Tuesday, the Trump administration named Amy Gleason acting administrator of the Department of Government Efficiency (DOGE). The announcement comes after weeks of questions about billionaire Elon Musk’s role and authority as DOGE’s “chair.”
Gleason previously worked for the U.S. Digital Service, which the Trump administration turned into DOGE.
Meanwhile, more than 20 civil service employees resigned from DOGE on Tuesday, saying they refuse to use their technical expertise to “dismantle critical public services.” The mass resignations included engineers, data scientists, designers and product managers.
The White House dismissed the move.
In a statement, White House press secretary Karoline Leavitt said, “Anyone who thinks protests, lawsuits and lawfare will deter President Trump must have been sleeping under a rock for the past several years.”
Musk posted to X that the story was “fake news” and that the staffers who resigned were “Dem political holdovers” who “would have been fired” anyway.
Passenger plane lands safely after close call with private jet on Chicago runway
A Southwest Airlines passenger jet aborted its landing at the last moment Tuesday to avoid colliding with a smaller plane at Chicago’s Midway International Airport. The Southwest flight landed safely after the flight crew performed what is known as a “go-around” to avoid the private business jet.
INCIDENT: Southwest #WN2504 (Boeing 737-800 N8517F) in near miss 1448UTC/0848CST today @ Chicago/Midway as FlexJet #LXJ560 (Challenger 350) crosses Runway 31C.
The Federal Aviation Administration said the private jet went onto the runway after its pilot misunderstood the instructions from air traffic control to hold short of it. This forced the Southwest plane to climb back to 3,000 feet, and the pilot asked the tower, “How’d that happen?”
Flight passengers traveling from Omaha to Chicago reported to news outlets that they were unaware anything had gone wrong until they later saw the video.
This is the latest close call in a long list of serious aircraft incidents in 2025, including at least five deadly crashes over the past few weeks.
Starbucks to cut 13 drinks from menu amid restructuring
Starbucks will remove some of its “less popular” items from the menu starting next Monday, March 4.
Among the 13 items pulled are several Frappuccino beverages, the Royal English Breakfast Latte and the White Hot Chocolate. The company announced the menu cuts along with plans to lay off more than 1,000 corporate employees.
Starbucks said these menu changes will reduce wait times and “make way for innovation,” and this is just the beginning. In the coming months, it will remove more drink and food choices from the menu in an effort to reduce it by 30%.
DeSantis backs getting rid of Florida’s property tax. What would that look like?
Florida Gov. Ron DeSantis supports abolishing property tax in the state. His support comes as a state senator introduced a bill to examine the impacts of getting rid of the tax.
Florida is home to three of the five U.S. metros where property taxes have increased the most since 2019, according to Redfin.
Eliminating the property tax would require a constitutional amendment. A Florida-based think tank said the state would need to double the sales tax to replace lost revenue.
“You bought the land. You’ve been taxed many times. It’s like, is it your property or not?” DeSantis said at an event laying out DOGE-like initiatives in Florida. “Just for being on your property, you [have] to write a check to the government every year, so you’re basically paying rent to the government to live on your own property.”
Property taxes are local, not state. So we’d need to do a constitutional amendment (requires 60% of voters to approve) to eliminate them (which I would support) or even to reform/lower them…
We should put the boldest amendment on the ballot that has a chance of getting that… https://t.co/WpOQmjNl0X
Earlier this month, DeSantis said he would support a constitutional amendment to rid Florida of property taxes.
“Property taxes are local, not state,” DeSantis wrote on X on Feb. 13. “So we’d need to do a constitutional amendment (requires 60% of voters to approve) to eliminate them (which I would support) or even to reform/lower them. We should put the boldest amendment on the ballot that has a chance of getting that 60%.”
Florida is seeing some of the highest property tax increases
Florida ranks around the middle of the country when it comes to the property tax burden. But when it comes to increases in property taxes, it sits near the top.
“We’ve been cutting taxes, but people have seen their property tax liability go up over these last years because the property is being assessed higher and higher,” DeSantis said Monday.
Florida is home to three of the five U.S. metros where property taxes have increased the most since 2019, according to Redfin. Property taxes in Jacksonville and Tampa increased nearly 60% over five years.
How would Florida make up the lost revenue?
Florida doesn’t have a state income tax. Ridding the state of property taxes would shift the tax burden elsewhere.
The Florida Policy Institute said if lawmakers replace property taxes with a consumption tax, it would double the state’s sales tax rate to 12%. InfluenceWatch rates FPI left of center due to its funding sources.
A 12% sales tax “would make Florida’s general sales tax the highest in the nation, disproportionately and negatively impacting households with low to moderate incomes in addition to businesses (who contribute 20 percent of all sales tax revenue in the state) and tourists (who contribute 14 percent).”
“If policymakers wanted to eliminate property taxes, they would need to raise $43 billion (or $2,015 per capita) to maintain public services currently funded with property tax revenue,” FPI’s report said.
Across the United States, local governments get three-fourths of their tax revenue for public education, infrastructure and public health from property taxes, according to the Institute on Taxation and Economic Policy.
FPI called the state’s property tax “the most important source of revenue in local governments primarily because of its stability.”
Denny’s increasing egg prices as bird flu causes prices to soar in the US
Denny’s has announced it is going to implement a surcharge on eggs at some of its restaurants. It did not say exactly how much.
The widespread bird flu is causing an egg shortage across the United States, which is driving up egg prices.
Denny’s joins Waffle House in levying a surcharge, with some retailers also putting limits on the number of eggs that customers can buy per visit.
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Denny’s is the latest in a chain of restaurants across the U.S. to increase the price of eggs on its menu due to an ongoing egg shortage. The nation’s continuing bird flu outbreak is decimating chicken flocks throughout the country.
The diner chain has reportedly joined a growing number of restaurants adding a surcharge to its egg-based meals at some locations. Egg supplies have dropped, and prices have soared as a result of H5N1.
How much will Denny’s charge when ordering a meal with eggs?
The chain released a statement saying it is making pricing decisions based on each market and each restaurant due to the regional impact of the egg shortage.
Denny’s has about 1,500 restaurants in the country, and the company hasn’t specified the exact amount of the surcharge yet. Earlier this month, Waffle House added a 50-cent per egg surcharge to its menu items. It has more than 2,000 restaurants nationwide.
What about the price at grocery stores?
Prices aren’t just rising in restaurants. Customers at grocery stores are also seeing rising prices for a carton of Grade A large eggs. Newsweek reports that the average cost for a dozen eggs was $4.95 in January, up from $4.15 in December. However, some shoppers are seeing prices in the $8 range, with supplies either very low or shelves completely empty.
Wholesale egg prices have already reached record levels. As a result, retailers such as Trader Joe’s, Costco and Walmart have implemented limits on the number of eggs each customer is allowed to buy.
What to expect for egg prices going forward
The Department of Agriculture estimates egg prices could rise another 20% this year, as it will take flocks months to replenish, forcing businesses to adapt.
According to the U.S. Department of Agriculture, the bird flu has killed more than 140 million egg-laying animals since 2022, including 19 million in the last month.
Hegseth to visit Guantánamo Bay migrant detention facilities
Defense Secretary Pete Hegseth visits Guantánamo Bay as some raise objections to the use of the facility to house deported migrants. And more clarity on Elon Musk’s directive that federal workers list five things they accomplished at work last week becomes available. These stories and more highlight your Unbiased Updates for Tuesday, Feb. 25, 2025.
Defense secretary to visit migrant detention facilities at Guantánamo Bay
Defense Secretary Pete Hegseth will travel to Guantánamo Bay on Tuesday, Feb. 25. He’ll visit where suspected illegal immigrants deported from the U.S. by the Trump administration are held.
The visit comes amid reports the Trump administration has halted its efforts to house migrants in tents at the facility after concerns they do not meet detention standards because they do not have air conditioning or electricity.
The move also comes as a group of Senate Democrats, led by Sen. Dick Durbin of Illinois, sent a letter to President Donald Trump challenging the transfer of migrants to the detention center in Cuba. In the letter, the senators called the move “unprecedented, unlawful and harmful to American national security, values and interests.”
The Democrats said immigration law does not give the federal government authority to detain migrants after they’ve been removed from the U.S. They said once the government deports someone from the U.S., there’s no basis in American law to keep that person in custody.
On Monday, Feb. 24, Defense Department officials confirmed that the Trump administration stationed 200 additional U.S. troops at the base in Cuba to assist with the detention of migrants, raising the total number of troops there to approximately 1,000.
According to the Defense Department website, Hegseth will receive briefings and meet with troops at Guantánamo Bay on Tuesday.
“The secretary’s trip underscores the department’s commitment to ensuring the security and operational effectiveness of Guantánamo Bay Naval Station,” it said.
Judge blocks immigration arrests at certain places of worship
A federal judge temporarily blocked immigration agents from making arrests “in or near” certain places of worship after Trump reversed a Biden-era rule barring immigration arrests at protected locations.
Under the Trump administration, the Department of Homeland Security’s directive said criminals would “no longer be able to hide in America’s schools and churches to avoid arrest.”
In his ruling Monday, blocking some immigration enforcement actions, the judge wrote that anyone who violates the injunction will be subject to “all applicable penalties, including contempt of court.”
The new ruling, however, is not a complete ban. Straight Arrow News reporter Kalé Carey focuses more on the judge’s order here.
Russia offers rare earth minerals as US and Ukraine work toward deal
As negotiations continue between the Trump administration and Ukraine over continuing American military assistance in exchange for access to Ukraine’s rare earth minerals, Russia is now offering its own resources and saying it is open to economic cooperation with the United States.
Moscow’s comments came after Trump said he’s in “serious discussions” with Russia about ending the war and is “trying to do some economic development deals,” specifically mentioning the country’s “massive rare earth deposits.”
During a video call Monday, Russian President Vladimir Putin urged officials to increase production of rare earth minerals, saying he wants to create a strategic reserve that will be vital for Russia’s future competitiveness and economic development.
Meanwhile, at a joint press conference with French President Emmanuel Macron at the White House, Trump said he expects Ukrainian President Volodymyr Zelenskyy to agree to give the U.S. access to its minerals. Trump has insisted Ukraine owes the U.S. payback for tens of billions of dollars in aid.
“In fact, [Zelenskyy] may come in this week or next week to sign the agreement,” Trump said. “So, the agreement’s being worked on now. They’re very close to a final deal. It’ll be a deal with rare earths and various other things.”
During his visit to the White House, Macron praised Trump for taking steps to end Russia’s war against Ukraine but urged him to “be careful” in the negotiation process. Macron said the U.S. and France need to work together to determine lasting future security guarantees.
Their meeting came on the third anniversary of Russia’s invasion of Ukraine, as the United Nations General Assembly overwhelmingly approved a resolution drafted by Ukraine condemning Russia as the aggressor in the war. The U.S. joined Russia and 16 other countries in voting against the resolution.
The president defended Department of Government Efficiency Chair Elon Musk’s email to federal employees over the weekend, demanding they list their top five accomplishments on the job last week. He called it “genius” and said it was a great way to ferret out those who do not show up for work.
However, the Office of Personnel Management, which sent the email on Musk’s behalf, informed executive branch officials on Monday that individual agencies can choose how to respond, and participation is voluntary. The OPM emphasized that failing to respond would not be deemed a resignation, despite Musk’s earlier threat that employees who refused could face job loss.
Federal workers initially had until 11:59 p.m. on Monday to respond. However, there is no update yet on the number of workers who actually responded.
Trump says tariffs on Canada, Mexico are ‘going forward’
The president has proposed a 25% tariff on imports from Canada and Mexico, covering everything from automobiles to energy. He stated that these taxes would create a more equitable trade environment with America’s top two trading partners.
This comes after both Mexican and Canadian leaders announced efforts in the past month to beef up border security and try to halt the dangerous drug fentanyl from coming into the U.S. through their countries. Critics believed a trade war could hurt the U.S. economy and drive up inflation.
During the Monday joint press conference at the White House with Macron, Trump said, “The tariffs are going forward on time, on schedule.”
Macron weighed in, saying he hoped a trade war could be avoided.
Mexican President Claudia Sheinbaum hopes to strike a deal with the White House later this week to avoid the tariffs.
‘It’s real’: Fyre Festival 2 tickets on sale for up to $1.1M
As of now, it remains unclear what festival attendees will receive for their money. The festival site promises arts, cuisine, music, comedy, fashion, gaming, sports, and “treasures,” but no musical artists have committed to performing at the three-day event set to take place in Mexico.
That’s raising eyebrows following the notorious Fyre Festival, which turned out to be a scam, and McFarland spent four years in prison for defrauding investors of over $27 million.
NYC rakes in $49 million in January from congestion tolls. Trump says it’s ‘DEAD’
New York City’s congestion pricing created $48.6 million in revenue in January, exceeding expectations. But the White House is taking steps to kill the rule.
Roughly 20% of the revenue collected comes from taxis and other for-hire vehicles. Passenger cars, trucks and other vehicles make up the rest.
The Trump administration called congestion pricing a “slap in the face to working-class Americans and small business owners.”
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New York’s congestion pricing program generated $48.6 million in January, the Metropolitan Transportation Authority (MTA) announced Monday, Feb. 24. But the controversial policy intended to reduce traffic has been declared “dead” by the Trump administration.
The toll charges most vehicles $9 during peak hours driving south of 60th Street in Manhattan. It took effect on Jan. 5, and brought in $48.6 million from tolls through the end of the month. The MTA expects the toll to generate $40 million per month in revenue or nearly $500 million per year.
The MTA said street traffic south of 60th Street is also subsiding. They’ve seen a 10% drop on Manhattan’s streets and an uptick in public transit ridership. So far, roughly 20% of the revenue collected comes from taxis and other for-hire vehicles. Passenger cars, trucks and other vehicles make up the rest.
The Trump admin wants to kill the toll
The MTA is releasing the first month’s data as the program faces extinction from the Trump administration. During the week of Feb. 17, Transportation Secretary Sean Duffy said his agency would revoke federal authorization that previously allowed the MTA to charge drivers.
“I think there’s a lot of great ideas around congestion pricing and how we can reduce it,” Duffy told CBS News. “But you can’t take American taxpayers, who paid for roads, and block them out and say you can’t access this unless you pay additional money.”
“CONGESTION PRICING IS DEAD,” the White House post read. “Manhattan, and all of New York, is SAVED. LONG LIVE THE KING!”
How New York is fighting to save congestion pricing
Democratic New York Gov. Kathy Hochul, who was instrumental in implementing congestion pricing, criticized the message from the president.
“New York hasn’t labored under a king in over 250 years,” Hochul said Wednesday, Feb. 19. “We sure as hell are not going to start now. The streets of the city where battles were fought, we stood up to a king, and we won then, and in case you don’t know New Yorkers, we’re in a fight. We do not back down, not now, not ever.”
The MTA immediately filed suit to stop the DOT from eliminating authorization. They said they will continue collecting tolls in the meantime.
“We had a 50-page complaint ready to go, and we hit the button to file it about three minutes after at least the official release of the Secretary Duffy’s letter purportedly terminating the program,” MTA chair and CEO Janno Lieber told NY1 Wednesday, Feb. 19.
The MTA argued that the federal government can’t unilaterally terminate a program that is already underway.
Duffy said the state and governor didn’t take proper steps before collecting tolls.
“She never did a study to say, ‘I really care about congestion. I want to reduce congestion. So I’m going to look at how much money should I charge in a toll, and how much will that reduce congestion,’” Duffy told CBS News. “That analysis was never done. So, instead of paying $9, could someone pay $5 and reduce congestion, or $3 to reduce congestion? She didn’t do that.”
“We studied, 4,000 pages, [over] four years of study,” Lieber told NY1. “We studied all different ranges of tolls, and contrary to what you just heard, we actually analyze the relationship between specific tolling amounts and reductions in congestion.”
Lieber said the dollar amounts Duffy proposed would not have made a meaningful dent in Manhattan’s congestion.
Behind the controversial program
New York lawmakers approved the tolling plan in 2019. But the plan has always been divisive. Gov. Phil Murphy, D-N.J., fought it on the legal side and asked the Trump administration to step in. Suburban commuters oppose the toll, saying they’re not well served by public transit.
New York intends to use the money raised by congestion pricing to finance infrastructure upgrades to the MTA. The agency expects it will raise $500 million a year, and after that period the state plans to sell bonds to raise the $15 billion needed for upgrades.
Hochul met with Trump during the week of Feb. 17 to defend congestion prices. She indicated he wasn’t moved. The Trump administration contends the toll is a “slap in the face to working-class Americans and small business owners” dependent on that traffic.
US economy depending on the wealthy more than ever: Report
A new report shows the wealthiest 10% of Americans are keeping the U.S. economy going right now, accounting for nearly half of all consumer spending. Meanwhile, working- and middle-class Americans have had to cut down on spending.
The wealthiest 10% make $250,000 or more each year.
Federal Reserve data shows credit card delinquency among non-wealthy Americans is the highest it’s been since 2011.
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America’s economy is doing well right now – unemployment is historically low, and inflation has mostly stabilized. However, that positive outlook can be a bit deceiving.
What’s really going on?
New data from Moody’s Analytics shows it’s the top 10% keeping the U.S. economy afloat, according to a Wall Street Journal report.
Meanwhile, those in the lower income brackets making $73,000 or less per year in household income are struggling more than they have since 2011.
Moody’s chief economist said they’ve had to turn to credit cards to maintain purchasing power. Federal Reserve data shows that’s not going so well.
What does the Fed say?
According to the New York Federal Reserve, credit card delinquency is the highest it’s been in more than a decade at 11%. That means 11% of people are 90 days or more overdue on paying their bills.
That’s even higher than the delinquency rate was during and after the COVID-19 pandemic when many people lost their jobs and struggled to find new work.
According to the Kansas City Federal Reserve, the share of Americans who are newly delinquent on their payments has risen to 9%. That’s also the highest it’s been since 2011. The Kansas City fed said the number of people only making minimum payments is also at an all-time high.
How are the wealthy keeping the economy afloat?
Moody’s said the top 10%, which are those making more than $250,000 per year, account for nearly half of all consumer spending in the United States and one-third of the nation’s gross domestic product.
Between September 2023 and September 2024, the country’s top earners increased their spending by 12%. At the same time, spending was down among working- and middle-class Americans.
Starbucks slashes 1,100 corporate jobs, tells execs to be in office 3 days
Starbucks announced it is slashing 1,100 corporate jobs. The company said it would notify affected employees by midday Tuesday, Feb. 25.
Baristas and other in-store workers would not see cuts.
CEO Brian Niccol said North American executives need to work from the Seattle or Toronto offices at least three days a week.
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The federal government isn’t the only major employer trimming headcount. On Monday, Feb. 24, Starbucks CEO Brian Niccol announced the company would cut 1,100 corporate employees this week.
In a letter to employees, Niccol said the company would notify affected workers by midday Tuesday, Feb. 25. The job cuts do not affect baristas and in-store teams.
On top of cutting 1,100 corporate jobs, Starbucks will eliminate several hundred additional open and unfilled positions.
“We are simplifying our structure, removing layers and duplication and creating smaller, more nimble teams,” Niccol wrote. “Our intent is to operate more efficiently, increase accountability, reduce complexity and drive better integration.”
Starbucks first hinted at these changes in a January letter to employees. In it, Niccol said the company would communicate changes by early March.
“Our size and structure can slow us down, with too many layers, managers of small teams and roles focused primarily on coordinating work,” Niccol said in January.
Executives need to be back in the office
In Monday’s announcement, Niccol also reiterated strict enforcement for in-person work for Starbucks executives.
“Moving forward, vp+ leaders in North America will need to be present with their teams in our Seattle (U.S.) and Toronto (Canada) offices at least three days a week,” Niccol said.
That includes Niccol, who made headlines for his own work arrangement when hired. Niccol did not relocate to Starbucks headquarters in Seattle when hired as the chief executive.
Instead, his contract allows him to commute via private jet from his Newport Beach, California, home. However, when he is not traveling, Niccol must work in Seattle three days a week.
Starbucks has had a hybrid work policy of three days a week in the office since 2023.
From Taco Bell to Chipotle to Starbucks
Starbucks hired Niccol from Chipotle to improve its operations. He started in September, when the company was struggling with store sales in and out of the U.S.
Niccol, who worked at Taco Bell before joining Chipotle, is credited with helping to revive Chipotle’s reputation after multiple incidents of foodborne illnesses. During his tenure as CEO, Chipotle outperformed the market.
Shares of Starbucks surged on the announcement that the company had hired Niccol for the top job.
Since starting at Starbucks, Niccol announced his “Back to Starbucks” initiative. He said the brand needed to reestablish itself as the community coffeehouse and placed high importance on fulfilling orders “on time, every time.”
The biggest consumer-facing challenge at Starbucks is managing the operation of multiple order channels, said Robert Byrne, senior director of consumer research at the foodservice industry consulting firm Technomic. Between in-store, online and drive-thru, Starbucks has struggled with synchronization.
“Part of the reason that [Niccol] is the person that they hand-picked as the next person to lead the brand is because he was very successful in creating two separate make lines in Chipotle stores, essentially one that satisfies one order flow and one that satisfies that in-store order flow, which makes for speed on both counts,” Byrne told Straight Arrow News last year.
Apple’s $500B US expansion: Factories, AI and thousands of jobs
Apple announced its $500 billion spending commitment in the U.S. over four years, the tech company’s largest-ever domestic economic impact, focusing on manufacturing, artificial intelligence and workforce expansion. The plan includes investments in research and development, silicon engineering and software development.
Apple anticipates adding 20,000 new jobs through investments in AI, semiconductor technology and manufacturing facilities, which include a new 250,000-square-foot facility in Houston, Texas.
The commitment also involves expanding data center infrastructure in five states and establishing the Apple Manufacturing Academy in Detroit to support small businesses.
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Apple announced a $500 billion spending commitment in the U.S. over the next four years, marking its largest-ever domestic economic impact. The plan includes investments in manufacturing, artificial intelligence and workforce expansion.
The commitment will focus on research and development, silicon engineering and software development.
Apple said it expects to add 20,000 new jobs, many of them in these fields.
What does Apple’s $500 billion commitment include?
Apple’s spending will support multiple initiatives. This includes the construction of new facilities, supply chain expansion, job creation and investments in AI and semiconductor technology. The company said this commitment covers Apple TV+ productions across 20 states, supplier partnerships and corporate expansions.
The tech company remains one of the largest U.S. taxpayers. It has paid over $75 billion in taxes over the last five years. In 2024 alone, the company spent $19 billion on taxes.
Where will the new manufacturing facility be built?
Apple is working with manufacturing partners to establish a 250,000-square-foot facility in Houston, Texas. There, servers will be assembled to support Apple Intelligence, the company’s AI-driven platform.
Previously manufactured outside the U.S., the servers will be assembled in Houston by 2026.
The tech company said the facility will create thousands of jobs and play a key role in its AI and cloud computing infrastructure. The servers will enhance Private Cloud Compute, Apple’s system for AI processing, with advanced security architecture.
How is Apple increasing semiconductor production in the US?
Apple is doubling its U.S. Advanced Manufacturing Fund from $5 billion to $10 billion to support domestic semiconductor production and high-skilled manufacturing. A portion of this funding will go toward securing advanced silicon chips produced at chip-maker TSMC’s Arizona facility, which began mass production last month.
The tech company is the largest customer at the plant, which employs more than 2,000 workers. The increased investment aims to strengthen U.S. semiconductor supply chains and reduce reliance on overseas chip production.
What states will see expanded data center capacity?
To enhance advancements in AI and cloud computing, Apple will broaden its data center infrastructure in North Carolina, Iowa, Oregon, Arizona and Nevada. The company stated that these facilities will utilize energy-efficient technology to support AI-driven applications.
What is Apple’s new Manufacturing Academy?
Apple will launch the Apple Manufacturing Academy in Detroit to help small and midsize businesses transition to advanced manufacturing. Its engineers and university experts, including Michigan State faculty, will offer free in-person and online courses on AI-driven manufacturing processes and supply chain optimization.
The tech company said the training will help businesses optimize their manufacturing processes through AI-driven solutions, improving productivity and efficiency.
DOJ investigating UnitedHealth over Medicare Advantage billing: Report
The DOJ has launched a civil fraud investigation into UnitedHealthcare over its billing practices in the Medicare Advantage program, according to the Wall Street Journal. The investigation focuses on whether the healthcare giant artificially inflated patient diagnoses to increase its monthly payments from the government.
In a statement, UnitedHealth Group called reporting by the Journal “outrageous and false” and accused the outlet of reporting “misinformation” about its partnership with Medicare Advantage.
This investigation is just the latest in a series of scandals to have dogged the healthcare giant since last year.
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UnitedHealthcare is currently under investigation by the U.S. Department of Justice (DOJ), according to a recent report from the Wall Street Journal. The government has launched a civil fraud investigation, looking at whether the embattled healthcare giant is illegally inflating its monthly payments received by the Medicare Advantage program, using patient diagnoses.
The investigation into UnitedHealthcare is being led by the DOJ’s civil fraud division and HHS’ inspector general’s office.
According to the WSJ, the DOJ and HHS are looking into whether the healthcare conglomerate was billing the government based on inflated patient diagnoses, both inside and outside physician groups it owns. As of 2023, more than 90,000 physicians worked under UnitedHealthcare, representing nearly one in 10 U.S. doctors. The government pays private insurers a set rate to provide benefits to seniors beyond traditional Medicare coverage.
Some doctors have reportedly claimed that, through training and software, UnitedHealth encouraged them to document diagnoses that would result in higher profits for the company, regardless of whether those diagnoses were accurate or not.
In a statement, UnitedHealth Group, the parent company of UnitedHealthcare, accused the WSJ of reporting “misinformation” about its partnership with Medicare Advantage, adding that the company “consistently perform[s] at the industry’s highest levels” when reviewed by the government.
The statement goes on to say that the WSJ’s reporting amounts to a “year-long campaign to defend the legacy system that rewards volume over keeping patients healthy and addressing their underlying conditions,” calling the Journal’s allegations “outrageous and false.”
This DOJ investigation is just the latest in a series of scandals that have dogged UnitedHealth Group.
Also last year, a UnitedHealth Group technology company, Change Healthcare, suffered a data breach that exposed upwards of 85 million patient records. The company hosts roughly one-third of all payments made by insurers to providers.
More recently, CNBC reported that UnitedHealthcare is offering some employees in its benefits division a buyout option. If the company does not reach its workforce reduction goal through the buyouts –– which are available until March 3 –– it will begin laying off employees. UnitedHealth Group employed more than 440,00 people across its entire network of companies as of December 2023.