Starbucks continues cutting corporate staff as CEO Brian Niccol pushes ahead with a sweeping turnaround effort that has already reshaped parts of the coffee giant’s business.
The company announced on Friday that it is eliminating about 300 US support roles and reviewing its international support organization, a move that could result in additional layoffs outside the US. Starbucks is also consolidating regional office space and reevaluating lease commitments to cut costs and streamline operations.
The cuts mark Starbucks’ third round of corporate layoffs since February 2025 and underscore how aggressively Niccol has moved to remake the company since taking over in September 2024.
“We are taking further action under the Back to Starbucks strategy, building on our strong business momentum and working to return the company to durable, profitable growth,” a Starbucks spokesperson said in a statement to Business Insider.
The spokesperson said company leaders reviewed their organizations to “sharpen focus, prioritize work, reduce complexity, and lower costs.”
Starbucks expects to record about $400 million in restructuring charges tied to the changes, including roughly $120 million in severance costs and about $280 million in accounting charges tied largely to leased office space, according to details the company shared in an SEC filing.
The latest cuts build on a broader restructuring effort Starbucks has been undertaking in the last year. In February 2025, the company said it would eliminate 1,100 corporate support roles globally and cut several hundred open positions. A further 900 cuts were announced in September, alongside the closure of more than 400 coffeehouses.
Starbucks has also tightened return-to-office expectations, announced the opening of a new Nashville satellite office, and reorganized teams as it works to revive years of sluggish sales growth and improve efficiency.
Starbucks’ restructuring mirrors a broader pullback across corporate America, where employers in retail, tech, and consumer industries have aggressively trimmed white-collar staff and are consolidating office operations.
At the same time, Starbucks’ turnaround efforts are beginning to show results. In its April earnings report, the company reported that global comparable-store sales increased by 6.2%, and executives described the business as gaining momentum. Its stock was up more than 26% year to date before the latest job cuts were announced.
Have a tip? Contact this reporter via email at Katherine Tangalakis-Lippert at ktl@businessinsider.com or Signal at byktl.50. Use a personal email address, a nonwork WiFi network, and a nonwork device; here’s our guide to sharing information securely.
Read the full article here
