Starbucks said Friday it’s laying off 300 corporate employees and closing some U.S. offices as part of its ongoing turnaround.
No coffeehouse employees are affected, the company said. The cuts will impact employees in support functions like marketing, human resources and supply chain management. No international employees are affected for now, but Starbucks said it is also reviewing its corporate structure outside the U.S.
Starbucks said it’s also closing
underused offices in Atlanta, Dallas, Chicago and other cities. The Seattle-based company recently announced that it's opening a corporate office in Nashville, Tennessee, that will employ up to 2,000 people within five years.
Starbucks expects to the moves to result in $400 million in restructuring charges, including $120 million in employee separation benefits.
Starbucks has been trying to reduce costs and complexity under Chairman and CEO Brian Niccol, who joined the company in 2024. Last year, the company laid off 2,000 corporate employees and closed hundreds of stores in the U.S., Canada and Europe.
Niccol said last month that the simplified structure is helping the company innovate more quickly. Starbucks is also investing in its remaining stores to improve customers' experience. It plans to redesign 1,000 U.S. stores this year to give them a cozier, more comfortable feel, and it's also hiring baristas to ensure faster service during busy times.
The efforts appear to be paying off. In the January-March period, Starbucks said its U.S. same-store sales, or sales at locations open at least a year, jumped 7%. Niccol called the quarter “the turn in our turnaround.”
“Our focus now is on sustaining our momentum and making our results repeatable and durable, all while delivering a healthy cost structure that supports profitable growth,” Niccol said during a conference call with investors. “It’s how we turn progress into consistent results.”
