Starbucks has announced yet another round of layoffs that will impact 300 US corporate jobs, while also hinting that the coffeehouse may soon restructure its international corporate workforce as well. The popular chain’s Friday announcement (US time) marks the third such shakeup since Brian Niccol officially took over as chairman and CEO of Starbucks in 2024, following his successful runs at Chipotle and Taco Bell.
As part of its efforts to return to profitable growth, the coffeehouse is also closing several regional support offices, including those in Atlanta, Burbank, Chicago, and Dallas. Explaining the impetus behind the new layoffs, the company stated that these moves aim to “sharpen focus, prioritize work, reduce complexity, and lower costs.”
As of now, the layoffs won’t impact the company’s coffeehouse staff.
Starbucks layoffs – Restructuring charges and severance benefits
As the chain continues to mount its investments elsewhere under Niccol’s leadership, the restructuring charges—combining severance costs and reassessment of office space—will total $400 million, according to Starbucks.
This hefty figure accounts for $120 million in severance benefits related to the job cuts and $280 million linked to the impairment of long-lived assets, such as real estate related to its reserve and roastery locations.
How have things changed under CEO Brian Niccol’s leadership
The major move comes about a month after Starbucks announced its $100 investment aimed at expanding its presence in the Southeast. This also included setting up a new support office in Nashville, Tennessee, where it hopes to bring in 2,000 employees over the next five years.
Moreover, Starbucks posted its strongest quarterly sales in two and a half years this April despite profits lagging amid Brian Niccol’s restructuring strategy. One centerpiece of his company turnaround efforts has been the “Back to Starbucks” goal. Through this approach, he seeks to invest in additional staffing aimed at improving customers’ experiences at coffeehouses.
Back in April 2026, the company highlighted that it had invested over $500 million in achieving Niccol’s vision since the strategy was put into motion.
On Friday, a company spokesperson reiterated in a statement to CNBC, “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.”
While mapping out his goals early on, Niccol said last year that Starbucks would cut 1,100 jobs and keep several hundred open roles unfilled. Even as sales may have fallen for the coffee chain, Niccol’s vision has added improved cafe operations, including new menu items, the reintroduction of seating at certain locations and increased staffing at coffeehouses.
During a call with executives in April, management attributed these operational changes backed by Niccol as the reason for a surge in customer traffic across all income cohorts in the quarter, Reuters reported.
Moreover, if certain cost-cutting objectives are met by 2027, the company’s top executives are expected to gain $6 million each in awards, as per an incentives plan Starbucks’ board approved last summer.