Starbucks has announced a new round of corporate layoffs, affecting 300 positions in the United States, as part of an ongoing restructuring initiative. The company also plans to close some regional support offices and is reviewing its international workforce. The layoffs will not impact baristas or other coffeehouse employees. Starbucks expects restructuring costs to reach $400 million, which includes $280 million in non-cash charges related to asset impairments and $120 million in cash costs associated with the workforce reductions.
This latest move is part of the company’s "Back to Starbucks" strategy aimed at enhancing focus and reducing operational complexity in order to foster sustainable and profitable growth. A company spokesperson noted that leadership is critically evaluating functions to optimize efficiency and cut costs.
These layoffs represent the third significant workforce reduction since CEO Brian Niccol took over. Earlier announcements included cutting 1,100 jobs in February 2025, followed by another 900 job losses later that year, as Starbucks undertook a $1 billion restructuring plan. As of September 2025, the company employed about 19,000 non-retail workers in the U.S. and 5,000 internationally within regional support operations.
Despite the job cuts, Starbucks has reported positive financial performance, with a 7.1% increase in U.S. same-store sales for the latest quarter, attributed to a rise in customer transactions. This marks the second consecutive quarter of growth in café traffic, suggesting that the company’s turnaround efforts are achieving their desired effect.
Why this story matters: The layoffs indicate Starbucks’ strategy to streamline operations amid increasing competition and changing customer behaviors.
Key takeaway: Starbucks is making significant operational changes to enhance profitability while experiencing a resurgence in sales.
Opposing viewpoint: Critics argue that layoffs can harm employee morale and customer service quality, potentially undermining the company’s recovery.
