Starbucks is once again trimming its workforce, laying off approximately 300 roles based in the United States as the coffee giant reshapes its operations to achieve what it describes as durable, profitable growth. The job reductions, reported by Reuters, will affect regional support offices, and the company is also consolidating its US office network. Several locations are set to close, including those in Atlanta, Burbank, Chicago, and Dallas.
International Support Structure Under Review
Alongside the domestic changes, Starbucks said it is reviewing its international support structure and expects additional job cuts outside the United States. The restructuring is intended to sharpen focus, prioritize work, reduce complexity, and lower costs. The company added that the changes will not have any impact on its coffeehouse operations.
Part of a Broader Turnaround Strategy
The latest cost-cutting measures come as Starbucks continues to navigate rising expenses while Chief Executive Brian Niccol advances a turnaround strategy centered on strengthening in-store operations, including increased investment in barista staffing. The company recently reported its strongest sales growth in more than two years, which executives described as a milestone in the turnaround, even as operating profit margins have nearly halved since late 2024.
Financial Impact of Layoffs
Starbucks estimates that it will spend about $120 million on severance payments linked to the latest round of layoffs. It is also taking a $280 million reduction in the book value of selected real estate assets, largely tied to its reserve and roastery sites and certain non-retail support properties.
Expansion in the US Southeast
In parallel, the company last month announced plans to invest $100 million to expand its presence in the US Southeast, including a new support office in Nashville, Tennessee, which is expected to accommodate around 2,000 employees over the next five years.
Executive Incentives Tied to Cost Targets
Executive incentives are also linked to the company’s cost strategy, with Starbucks’ board approving a plan last summer under which top executives could receive $6 million each if specific cost-cutting targets are achieved by 2027.
Previous Workforce Reductions
The latest layoffs add to a series of workforce reductions since the turnaround began, including the elimination of 1,100 corporate positions announced in February last year.
