Starbucks Cuts 300, Closes Chicago Office

Starbucks said on May 15 that it would eliminate 300 U.S. corporate jobs and close some regional support offices, including its Chicago location, as the coffee chain pushes ahead with a broader restructuring under Chief Executive Brian Niccol. The company said the cuts affect corporate employees in regional support roles, not baristas or other coffeehouse workers. Chicago is among the offices being shuttered, alongside Atlanta, Burbank and Dallas. Starbucks said the moves are part of an effort to simplify operations, lower costs and return to what it called “durable, profitable growth.” ### Which Starbucks jobs are being cut? The 300 positions are U.S. corporate roles in regional support offices, Starbucks said. Reuters reported the company described the cuts as part of an ongoing effort to “sharpen focus, prioritize work, reduce complexity, and lower costs.” Coffeehouse workers are not part of this round. The company said the changes will not affect its stores, even as Niccol’s turnaround has included added barista staffing and other investments tied to the in-store experience. ### Why is the Chicago office closing now? Chicago is one of several underused regional support offices Starbucks said it is consolidating. (wifc.com) Reuters reported the company is closing offices in Atlanta, Burbank, Chicago and Dallas as part of the restructuring announced Friday. The office closures come weeks after Starbucks announced a separate expansion in Tennessee. (wifc.com) On April 21, the company said it would invest $100 million in a new Southeast corporate office in Nashville, where it expects to employ up to 2,000 people over the next several years. ### How does this fit into Brian Niccol’s turnaround? Brian Niccol has been reshaping Starbucks’ support organization since taking over in 2024. In a message to employees published in early 2025, Starbucks said its support structure had become too layered and too slow, with duplication of work and roles centered on coordination rather than decision-making. (investor.starbucks.com) February 2025 brought an earlier round of layoffs affecting 1,100 corporate employees, according to Reuters. Starbucks said at the time and again in this latest move that the goal was to build smaller support teams while protecting store-level investments. January 29, 2026, marked Starbucks’ investor day, where the company said its “Back to Starbucks” plan was aimed at long-term, sustainable growth. (about.starbucks.com) Reuters reported executives last month pointed to the company’s strongest sales growth in more than two years, even as operating profit margins had fallen sharply during the turnaround. (wifc.com) ### What will the restructuring cost Starbucks? Starbucks said it expects about $400 million in restructuring charges from the latest moves. Reuters reported that figure includes about $120 million in severance benefits for affected employees. The remaining hit comes largely from real-estate write-downs. Reuters said Starbucks is reducing the book value of some properties by $280 million, primarily tied to reserve and roastery sites and some non-retail support facilities. (investor.starbucks.com) ### Are more cuts coming outside the United States? Starbucks said it is also reviewing its international support organizations. (wifc.com) Reuters reported the company expects additional job cuts outside the United States as that review continues. The company has not publicly detailed how many international roles could be affected or which offices might be included. (wifc.com) What it has said is that the U.S. coffeehouse business is not part of these cuts, while support operations remain under review. ### What happens next for Starbucks’ office footprint? Nashville is the clearest next marker in Starbucks’ office plan. (wifc.com) The company said on April 21 that the new Southeast office will work with its Seattle headquarters and support expansion in the Southeast, with hiring expected to build toward as many as 2,000 jobs over the next several years. International support teams are the next area under review. Starbucks said more changes could follow outside the United States, while the company continues its restructuring and hiring tied to the Nashville buildout. (wifc.com) (investor.starbucks.com)