Starbucks Announces Layoffs and Office Closures Amid Restructuring Efforts
Starbucks is laying off 300 U.S. corporate employees and closing several regional offices as part of its ongoing restructuring strategy.
Starbucks announced on Friday the layoff of 300 U.S. corporate employees and the closure of several regional offices, including those in Atlanta, Dallas, and Chicago. These measures are part of the company's ongoing efforts to streamline operations and reduce costs. The affected positions are in support functions such as marketing, human resources, and supply chain management; coffeehouse employees are not impacted.
The company stated that these actions aim to "sharpen focus, prioritize work, reduce complexity, and lower costs." Starbucks is also reviewing its international corporate structure, indicating potential future changes outside the U.S.
In addition to the layoffs and office closures, Starbucks plans to open a new corporate hub in Nashville, Tennessee, expected to employ up to 2,000 people over the next five years.
These restructuring efforts are anticipated to result in $400 million in charges, including $120 million allocated for employee separation benefits.
Under CEO Brian Niccol, who joined the company in 2024, Starbucks has been focusing on simplifying operations and cutting costs. Previous measures included laying off 2,000 corporate employees last year and closing numerous stores.
These initiatives appear to be yielding positive results, with U.S. same-store sales rising 7% in the January–March period. Niccol emphasized the importance of sustaining momentum and establishing a durable, profitable cost structure for continued growth.