Starbucks pours a bitter brew: Coffee giant to lay off 300 workers across US in $400 million restructuring

Starbucks is once again trimming its workforce, laying off about 300 US-based roles set to go as the coffee giant reshapes its operations in a bid to get back to what it calls “durable, profitable growth”.

The job reductions, according to Reuters, will affect regional support offices, with Starbucks also moving to consolidate its US office network. Several locations are set to shut, including those in Atlanta, Burbank, Chicago and Dallas. Alongside the domestic changes, the company said it is reviewing its international support structure and expects additional job cuts outside the United States.

The restructuring is intended to “sharpen focus, prioritize work, reduce complexity, and lower costs”. The company added that the changes will not have any impact on its coffeehouse operations.

The latest cost-cutting measures come as Starbucks continues to navigate rising expenses while chief executive Brian Niccol advances a turnaround strategy centred on strengthening in-store operations, including increased investment in barista staffing. The company recently reported its strongest sales growth in more than two years, which executives described as a milestone in the turnaround, even as operating profit margins have nearly halved since late 2024.

Starbucks estimates that it will be spending about $120 million in severance payments linked to the latest round of layoffs. It is also taking a $280 million reduction in the book value of selected real estate assets, largely tied to its reserve and roastery sites and certain non-retail support properties.

In parallel, the company had last month announced plans to invest $100 million to expand its presence in the US Southeast, including a new support office in Nashville, Tennessee, which is expected to accommodate around 2,000 employees over the next five years.

Executive incentives are also linked to the company’s cost strategy, with Starbucks board approving a plan last summer under which top executives could receive $6 million each if specific cost-cutting targets are achieved by 2027.

The latest layoffs add to a series of workforce reductions since the turnaround began, including the elimination of 1,100 corporate positions announced in February last year.

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