Starbucks to lay off 300 corporate workers, close some U.S. offices

Starbucks said Friday it will lay off 300 corporate employees in the United States and close some offices as it continues reshaping operations under Chief Executive Brian Niccol.

In a statement, the Seattle-based company said the job cuts involve support functions such as marketing, human resources and supply chain management. Starbucks also said the layoffs do not affect coffeehouse employees, limiting the impact to roles tied to corporate operations rather than store staffing.

Starbucks said it is closing underused offices in cities including Atlanta, Dallas and Chicago, as part of what it described as its broader effort to simplify and reduce complexity. The company said it is also reviewing its corporate structure outside the U.S., but added that no international employees are affected for now.

The company said it expects the restructuring actions to produce $400 million in charges. Starbucks said $120 million of that total would go to employee separation benefits.

Niccol joined Starbucks in 2024 and has been leading efforts to cut costs and streamline the company. The company said last year it laid off 2,000 corporate employees and closed hundreds of stores across the U.S., Canada and Europe as it worked through earlier phases of its turnaround.

Starbucks said Niccol has argued that its simplified structure is helping the company innovate more quickly. The company also said it is investing in remaining stores, including plans to redesign 1,000 U.S. stores this year to change their look and feel and hiring baristas to speed service during busy periods.

Starbucks said its customer-sales performance has improved recently, pointing to U.S. same-store sales for the January-March period. Starbucks said those sales rose 7% during the quarter, and Niccol described the period on a conference call with investors as “the turn in our turnaround.”

“Our focus now is on sustaining our momentum and making our results repeatable and durable, all while delivering a healthy cost structure that supports profitable growth,” Niccol said during the call. “It’s how we turn progress into consistent results.”

The latest round of corporate restructuring comes as Starbucks continues to pursue a mix of cost reductions and retail changes, while maintaining that store-level employees are not part of the job cuts it announced this week.