Starbucks is once again trimming its workforce, cutting about 300 U.S. jobs that are set to end as the coffee giant reshapes its operations in an effort to return to what it calls “sustainable and profitable growth.”The job cuts, according to Reuters, will affect regional support offices, with Starbucks also moving to strengthen its network of offices in the United States. Several locations are scheduled to close, including those in Atlanta, Burbank, Chicago and Dallas. Along with the domestic changes, the company said it is reviewing its international support structure and expects additional job cuts outside the United States.The restructuring aims to “increase focus, prioritize work, reduce complexity, and reduce costs.”
The company added that the changes will not have any impact on its café operations.The latest cost-cutting measures come as Starbucks continues to weather rising expenses while CEO Brian Niccol develops a turnaround strategy focused on enhancing in-store operations, including increasing investment in hiring baristas. The company recently reported its strongest sales growth in more than two years, which executives described as a milestone in that turnaround, even as operating profit margins have nearly halved since late 2024.
Starbucks estimates it will spend about $120 million in severance payments related to the latest round of layoffs. It will also take a $280 million reduction in the carrying value of select real estate assets, largely related to its reserve and roaster locations and certain supporting non-retail properties.In parallel, the company last month announced plans to invest $100 million to expand its presence in the southeastern United States, including a new support office in Nashville, Tennessee, which is expected to accommodate about 2,000 employees over the next five years.Executive incentives are also tied to the company’s cost strategy, with Starbucks’ board of directors approving a plan last summer under which top executives could receive $6 million each if specific cost-reduction goals are met by 2027.The latest layoffs add to a series of workforce reductions since the transformation began, including the elimination of 1,100 jobs at the company announced in February last year.