Starbucks eliminating 300 U.S. corporate jobs, closing some regional offices
Starbucks is laying off more corporate employees as part of its "Back to Starbucks" turnaround strategy which aims to return the company to profitable growth.
The coffee giant is cutting some 300 U.S. jobs, with the layoffs not affecting workers in Starbucks stores. Starbucks also plans to shutter its “underused” offices in Atlanta, Chicago, Dallas and Burbank, Calif. (The closings come as the company recently announced it will open a Southeast corporate office in Nashville, Tenn., that will employ up to 2,000 people in five years.)
The combined severance costs and reassessment of its office space will result in restructuring charges of $400 million, according to a regulatory filing. Starbucks expects to record $280 million in non-cash charges related to the impairment of long-lived assets and $120 million in cash charges tied to the job cuts.
“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 latest round of cuts are the third under under CEO Brian Niccol, who took the reins of the chain in September 2024. Under his leadership, Starbucks has been working to lower costs and streamline operations as it also invests to improve the in-store customer experience.
The strategy appears to be gaining momentum. For the quarter ended March 29, the company reported earnings and revenue that topped estimates amid its second consecutive quarter of traffic growth.
[READ MORE: Starbucks adding two new elements to its store uplift program]
“Our second quarter marked the turn in our turnaround as our Back to Starbucks plan drove both top and bottom line growth,” commented Niccol said in the earnings report.
