Starbucks Corp. is cutting an additional 300 corporate jobs across the US, including positions at its Seattle headquarters, as part of an ongoing cost-reduction drive. This move follows a broader restructuring plan aimed at sharpening focus, prioritizing work, reducing complexity, and lowering costs, which is part of CEO Brian Niccol's turnaround strategy.
The layoffs account for approximately 3% of Starbucks' US corporate workforce. The company employs 9,000 corporate roles in the US out of a total of 223,000 workers. Starbucks also stated it is reviewing its international team, which comprises 5,000 corporate employees, hinting at potential future job cuts outside the US.
Starbucks expects to incur a restructuring charge of $400 million due to these actions. This charge includes $280 million for office closures and $120 million allocated for severance packages. The company is also streamlining its real estate footprint, including consolidating US regional support offices and taking steps to address leases and lease commitments. Regional support offices in cities like Atlanta, Burbank, Chicago, and Dallas are being closed.
