Starbucks announced on May 15 that it will eliminate 300 support roles in the United States and consolidate some regional offices. The company also plans to review its international workforce as part of a broader restructuring effort. The layoffs do not affect coffeehouse employees, and the company expects to record $400 million in restructuring charges, including $120 million for severance packages and $280 million for office closures.
Background and Context
Starbucks CEO Brian Niccol has overseen multiple rounds of layoffs since taking the helm. In February 2025, the company cut 1,100 jobs and left several hundred positions unfilled. Seven months later, it announced 900 additional job losses as part of a $1 billion restructuring plan. As of September 28, 2025, Starbucks had 19,000 non-retail workers in the U.S. and 5,000 internationally in support roles.
The latest cuts are part of Starbucks' 'Back to Starbucks' strategy, aimed at reducing complexity, lowering costs, and improving profitability. The company has reported strong financial performance under Niccol, with 6.2% global same-store sales growth in its latest quarter, beating Wall Street expectations of 3.7%. Shares have risen 26% year-to-date.
Turnaround Efforts
Under Niccol, Starbucks has focused on improving café operations, introducing new menu items, and increasing staffing at stores. The company has also reintroduced seating and enhanced customer experience. Despite these efforts, competition and budget-conscious consumers have pressured sales in recent years.
Employee Impact
The 300 layoffs represent roughly 3% of Starbucks' U.S. corporate workforce, though a small fraction of its 223,000 total employees. The company employs 158,000 workers internationally, with 5,000 in corporate roles. The restructuring is expected to streamline operations and support long-term growth.