Starbucks Accelerates Turnaround with New Corporate Layoffs and Office Closures
Starbucks is implementing a significant streamlining of its U.S. corporate operations, announcing the elimination of 300 jobs and the closure of several regional support offices. These moves represent the third wave of job cuts under CEO Brian Niccol, signaling a continued focus on efficiency as part of the company’s broader turnaround strategy, dubbed “Back to Starbucks.”
The coffee giant confirmed that the affected positions are within its U.S. corporate structure and do not impact its coffeehouse employees. The company is also initiating a review of its international corporate workforce. This latest restructuring is expected to incur approximately $400 million in charges, comprising $280 million in noncash charges related to asset impairment and $120 million in cash charges for severance and other job-cut related expenses. Previous rounds of layoffs under Niccol’s leadership included 1,100 job cuts in early 2025 and an additional 900 non-retail positions later that year, part of a substantial $1 billion restructuring plan.
Since taking the helm, Niccol has steered Starbucks through an extensive revitalization of its U.S. business, addressing a period where sales were impacted by heightened competition and more cost-conscious consumers. The strategy has involved a multi-faceted approach, including enhancing cafe operations, introducing popular new menu items, reintroducing seating options, and bolstering staffing levels at its retail locations.
These strategic shifts appear to be yielding positive results. The company recently reported a robust 7.1% growth in U.S. same-store sales for its latest quarter, driven by a 4.3% increase in transactions. This marks the second consecutive quarter of rising customer traffic in Starbucks’ U.S. cafes, a clear indication that the turnaround initiatives are gaining traction. CEO Niccol highlighted the quarter as a “milestone,” signifying a crucial turning point in the company’s comeback efforts.