Starbucks cuts 300 U.S. corporate jobs and closes some regional offices

A Starbucks sign hangs outside a Starbucks coffee shop in downtown Pittsburgh. (AP Photo/Gene J. Puskar, File)

Starbucks is laying off 300 U.S. corporate employees in its regional support offices as it seeks to return to “durable, profitable growth,” the company announced early Friday.

The company said it is consolidating some U.S. regional support offices, closing some including those in Atlanta, Burbank, Chicago and Dallas. The company said it is also reviewing its international support organizations and expects more job cuts outside the U.S.

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The company said the moves are part of an on-going effort to “sharpen focus, prioritize work, reduce complexity, and lower costs.” It said they will not impact its coffeehouses.

Costs have mounted at Starbucks in recent quarters as CEO Brian Niccol pursues a turnaround strategy focused on the coffeehouse floor, and which has entailed hefty investments in additional barista staffing. Executives last month touted what they called a milestone in the turnaround as the company posted its strongest sales growth in more than two years, although operating profit margins have fallen by nearly half since the turnaround began in late 2024.

The company said it expects to pay out about US$120 million in severance benefits to terminated employees. It also said it is reducing by $280 million the book value of some real estate, primarily related to its reserve and roastery locations, as well as some non-retail support facilities.

Starbucks last month announced it was investing US$100 million to expand its presence in the Southeast, including the establishment of a new support office in Nashville, Tennessee, where it said it expects to host 2,000 employees over the next five years.

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Starbucks top executives stand to gain US$6 million each in awards if certain cost-cutting goals are met by 2027 under an incentives plan approved by the company’s board last summer.

Starbucks employees have gone through several rounds of layoffs since the turnaround began, including a lay-off of 1,100 corporate employees announced in February last year.

(Reporting by Waylon Cunningham; Editing by Chizu Nomiyama )