Starbucks announced on Friday that it will lay off 300 corporate employees in the U.S. and close regional offices in Atlanta, Dallas, Chicago, and other cities as part of its ongoing restructuring efforts under CEO Brian Niccol.
Key Takeaways
Starbucks announced it will lay off 300 U.S. corporate workers and close regional offices in Atlanta, Dallas, Chicago, and other cities. The move is part of its ongoing restructuring under CEO Brian Niccol to reduce costs and streamline operations.
- Starbucks lays off 300 U.S. corporate employees
- Regional offices in multiple cities will be closed
- Layoffs affect support functions like marketing and HR
- No coffeehouse or international employees are affected
- Restructuring expected to cost $400 million
The job cuts primarily affect support functions such as marketing, human resources, and supply chain management. No coffeehouse employees or international staff will be impacted by this round of layoffs. The company expects to incur $400 million in restructuring charges, including $120 million for employee separation benefits, according to CBS News.
The closures are part of Starbucks' strategy to streamline its operations and reduce costs. Niccol, who joined the company in 2024, has been leading a turnaround plan aimed at simplifying the business and improving profitability. Last year, the company laid off 2,000 corporate employees and closed hundreds of stores in the U.S., Canada, and Europe.
Despite the layoffs, Starbucks reported a 7% increase in U.S. same-store sales for the January-March period, indicating that its turnaround efforts are beginning to pay off. Niccol described this quarter as 'the turn in our turnaround' during a conference call with investors.
Starbucks also plans to open a new corporate office in Nashville, Tennessee, which is expected to employ up to 2,000 people within five years. The company is investing in its remaining stores by redesigning 1,000 U.S. locations this year and hiring more baristas to improve customer service.
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