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Reading: Starbucks Announces Corporate Layoffs and Office Closures as Part of Turnaround Strategy
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Finance

Starbucks Announces Corporate Layoffs and Office Closures as Part of Turnaround Strategy

News Desk
Last updated: May 15, 2026 3:55 pm
News Desk
Published: May 15, 2026
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Starbucks has announced a new wave of corporate layoffs, indicating ongoing efforts to streamline operations as part of its broader turnaround strategy. The coffee giant plans to eliminate 300 jobs across its U.S. corporate workforce and will close some regional support offices. These layoffs are a continuation of the restructuring efforts initiated under CEO Brian Niccol, though they will not impact employees working directly in coffeehouse locations.

The company disclosed that it will incur approximately $400 million in restructuring charges, which will include noncash costs related to the impairment of long-lived assets and cash expenses associated with the job cuts. Specifically, Starbucks anticipates a $280 million charge for noncash impairments and $120 million in cash charges.

A spokesperson for Starbucks stated, “We are taking further action under the Back to Starbucks strategy, building on our strong business momentum and working to return the company to durable, profitable growth.” The spokesperson emphasized that this decision was made after careful review by leadership to sharpen focus and reduce complexity in their operations.

These layoffs are part of a series of job cuts since Niccol took over the reins. In February 2025, the company previously announced the elimination of 1,100 roles and declared plans to leave hundreds of other positions unfilled. Just seven months later, another 900 job losses were revealed, linked to a $1 billion restructuring initiative.

As of September 2025, Starbucks had reported a workforce of 9,000 nonretail employees in the U.S., as well as 5,000 international employees working in regional support operations. Amid increasing competition and changing consumer behavior, Starbucks has made strides to revive its U.S. business. The company has improved its café operations, introduced popular new menu items, and reinstated in-store seating while enhancing staffing levels.

Recent fiscal reports show that U.S. same-store sales rose by 7.1%, attributed to a 4.3% increase in customer transactions. This marks the second consecutive quarter of traffic growth in its U.S. cafes, indicating that the company’s efforts to revitalize its business are beginning to pay off.

In a video accompanying the fiscal second-quarter results, Niccol remarked, “This quarter marked a milestone for Starbucks – and the turn in our turnaround.” The company continues to navigate a challenging market landscape, signaling both a commitment to restructuring and a focus on growth.

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