Starbucks cuts 300 U.S. jobs

Starbucks said on May 15 that it will eliminate 300 U.S. corporate roles, close some regional support offices and review its international support organization as Chief Executive Brian Niccol presses ahead with a broader turnaround plan. The company said the cuts affect support functions rather than store employees, and described the move as part of an effort to reduce complexity and lower costs. Reuters reported that offices in Atlanta, Burbank, Chicago and Dallas are among those being closed. Starbucks also said it expects additional job cuts outside the United States as the international review continues. The move is the latest step in Niccol’s “Back to Starbucks” overhaul, which has centered on store operations, staffing and service standards since he took over in 2024. Starbucks told employees in a September 2025 message that its support teams had too many layers, too many small management structures and too many roles focused on coordination rather than clear ownership. In that note, Niccol said the company would make changes to the structure, size and role of support teams globally, while shielding in-store teams and store-hour investments. (money.usnews.com) ### Which jobs are being cut, and who is not affected? Starbucks said the 300 eliminated roles are U.S. corporate positions in regional support offices, not coffeehouse jobs. Associated Press reported that the affected functions include marketing, human resources and supply chain management, while Reuters said the company framed the cuts as part of a push for “durable, profitable growth.” (about.starbucks.com) The company said store workers will not be affected by this round. That distinction matters because Starbucks has spent much of the past year talking publicly about adding labor to stores and improving service times as part of its turnaround. ### Why is Starbucks closing offices in Atlanta, Burbank, Chicago and Dallas? (money.usnews.com) Reuters reported that Starbucks is consolidating parts of its U.S. regional support footprint and closing some offices in Atlanta, Burbank, Chicago and Dallas. The company has not publicly detailed how many roles are tied to each office, but it said the broader aim is to sharpen focus, prioritize work and reduce complexity. (money.usnews.com) April 21 adds another piece to that reshaping. Starbucks said last month that it would invest $100 million in a Southeast corporate office in Nashville, Tennessee, where it expects to employ up to 2,000 people over the next several years. The company said that office will support coffeehouse expansion and customer demand in the Southeast and work with headquarters in Seattle. (money.usnews.com) ### How does this fit with Starbucks’ turnaround under Brian Niccol? January 29 was the date Starbucks used its 2026 Investor Day to argue that the turnaround was gaining traction. The company said then that it expected 5% or greater consolidated revenue growth by fiscal 2028, more than 2,000 net new stores globally and about 400 net new U.S. company-operated stores. (investor.starbucks.com) Reuters reported that executives last month described recent results as the strongest sales growth in more than two years, even as operating profit margins have fallen sharply since the turnaround began in late 2024. Starbucks has been spending more on store labor and other changes tied to the plan, and Reuters said top executives can earn incentive awards tied in part to cost-cutting goals through 2027. (about.starbucks.com) ### What financial charges is Starbucks taking with the cuts? Starbucks said it expects to pay about $120 million in severance benefits tied to the job cuts. Reuters also reported that the company is reducing the book value of some real estate by $280 million, primarily linked to reserve and roastery sites and some non-retail support facilities. (money.usnews.com) Those charges show that the latest cuts are part of a wider restructuring of the support organization and property footprint, not only a headcount reduction. Starbucks has not disclosed a timetable for the international review beyond saying it expects further cuts outside the United States. ### What comes next from here? (money.usnews.com) Starbucks said the international support review is ongoing and is expected to lead to additional job cuts outside the United States. The company’s next major public checkpoint is likely to come through future investor updates and filings, after its April 28 second-quarter fiscal 2026 results and its May 15 current report filing. Nashville hiring is also set to continue over the next several years as the new Southeast office expands. (money.usnews.com) (investor.starbucks.com)