Starbucks to lay off 300 US corporate workers

Starbucks said it will lay off 300 corporate employees and close some offices in the U.S. as part of its ongoing transformation.

The company said no coffee shop employees were affected.

The cuts will affect employees in support functions such as marketing, human resources and supply chain management.

No international employees were affected, but Starbucks said it was also reviewing its corporate structure outside the US.

Starbucks also said it was closing underutilized offices in Atlanta, Dallas, Chicago and other cities.

The Seattle-based company recently announced it will open a corporate office in Nashville, Tennessee, which will employ 2,000 people within five years.

Starbucks expects these moves to result in $400 million ($559 million) in restructuring expenses, including $120 million in employee separation benefits.

Starbucks is trying to reduce costs and complexity under chairman and CEO Brian Niccol, who joined the company in 2024.

Last year, the company laid off 2,000 corporate employees and closed hundreds of stores in the United States, Canada and Europe.

Niccol said last month that the simplified structure helps the company innovate faster.

Starbucks is also investing in its remaining stores to improve customer experience.

This year, it plans to redesign 1,000 stores in the U.S. to give them a warmer, more comfortable feel and is also hiring baristas to provide faster service during busy times.

The efforts seem to be paying off.

From January to March, Starbucks said its U.S. same-store sales, or sales at locations open at least a year, rose seven percent.

Niccol described the quarter as “the turnaround in our turnaround.”

“Our focus now is to maintain our momentum and make our results repeatable and durable while delivering a healthy cost structure that supports profitable growth,” Niccol said on a conference call with investors. he said.

“This is how we turn progress into consistent results.”