Starbucks has announced plans to cut 300 jobs in the United States, adding that it has initiated a review of its international corporate workforce. The layoffs mark the third round of job cuts since CEO Brian Niccol took the helm of the coffee giant.
Restructuring charges and scope
According to a report by CNBC, the combined severance costs and reassessment of office space will result in restructuring charges of approximately $400 million. The layoffs do not impact Starbucks' coffeehouse staff, the report stated.
“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 CNBC. “Leaders have taken a hard look at their respective functions to further sharpen focus, prioritize work, reduce complexity, and lower costs,” the spokesperson added.
Third round of job cuts under CEO Niccol
The latest round of job cuts is the third layoff under the leadership of Starbucks CEO Brian Niccol. The first layoffs were announced in February 2025, when the company said it would cut 1,100 jobs and not fill several hundred other open positions. Seven months later, the company announced another round of job cuts, slashing 900 jobs among its nonretail workers as part of a $1 billion restructuring plan.
According to a regulatory filing, Starbucks had approximately 9,000 non-retail employees in the United States and another 5,000 workers in international regional support roles as of September 28, 2025.
Turnaround shows strong results
Under CEO Brian Niccol, Starbucks has been working on a major turnaround plan for its US business. The company had earlier faced slowing sales because of growing competition and customers cutting back on spending. As part of the recovery plan, Starbucks improved operations at its cafes, introduced new menu items, brought back seating in stores, and increased staffing levels at coffeehouses.
The company’s latest quarterly results showed signs of improvement. Starbucks reported that its US same-store sales rose 7.1%, helped by a 4.3% increase in customer transactions. It marked the second consecutive quarter of customer traffic growth at Starbucks cafes in the US.
“This quarter marked a milestone for Starbucks – and the turn in our turnaround,” Niccol said in a video shared alongside the company’s fiscal second-quarter results in April.
