Starbucks is preparing to lay off approximately 300 corporate employees in the United States and close several regional support offices as the coffee chain continues a large-scale restructuring effort under CEO Brian Niccol’s turnaround strategy.
The company announced Friday that the job cuts will affect corporate and support positions rather than baristas or workers inside Starbucks coffee shops. According to Starbucks, the layoffs are part of ongoing efforts to simplify operations, reduce costs, and improve efficiency as the company attempts to strengthen profitability and accelerate its “Back to Starbucks” recovery plan.
Starbucks said regional support offices in Atlanta, Burbank, Chicago, and Dallas will be closed as part of the restructuring process. The company is also consolidating office space and reevaluating several lease agreements tied to non-retail properties. Starbucks confirmed that employees in departments including marketing, human resources, and supply chain operations will be impacted by the reductions.
According to the company, the restructuring will result in approximately $400 million in total charges during 2026. Starbucks said around $120 million of those costs will go toward severance and employee-related expenses, while another $280 million is tied primarily to real estate impairments and lease-related charges involving office properties, reserve locations, and roastery facilities.
The newest cuts mark Starbucks’ third round of corporate layoffs within roughly 15 months. Earlier restructuring efforts already eliminated more than 2,000 corporate jobs, including approximately 1,100 positions cut in early 2025 and dozens of technology-related roles removed last month.
Despite the layoffs, Starbucks executives said the company believes its turnaround strategy is beginning to show positive momentum. Starbucks recently reported improving sales trends, including a rise in comparable-store sales during recent quarters. The company’s stock had also climbed more than 26% this year prior to Friday’s announcement.
CEO Brian Niccol, who took over leadership of Starbucks in late 2024, has aggressively pushed changes throughout the company aimed at improving customer experience, speeding up service, streamlining operations, and cutting corporate expenses. His “Back to Starbucks” strategy has included menu simplification, operational restructuring, office consolidation, and tighter return-to-office policies for corporate employees.
Starbucks also confirmed it has started reviewing its international corporate support organization, signaling that additional layoffs outside the United States could occur in coming months. The company did not specify which countries or departments could be affected internationally.
At the same time Starbucks is reducing corporate staff, the company continues investing in certain expansion projects. Starbucks recently committed roughly $100 million toward growth initiatives in the southeastern United States, including plans for a new Nashville support hub expected to employ about 2,000 workers within five years.
The company has also continued adjusting its workplace policies. Starbucks previously announced that many corporate employees would be required to return to the office four days per week beginning later this year. Workers unwilling to comply were offered voluntary exit packages.
Although Starbucks said the restructuring is necessary for long-term growth, the continued layoffs add to broader concerns surrounding workforce reductions across corporate America as companies increasingly focus on automation, artificial intelligence, cost-cutting, and operational efficiency.
Source: CNBC
