Starbucks Corp. is cutting an additional 300 corporate jobs, its latest move to hit cost-reduction targets amid a broader turnaround effort. The positions being eliminated are located across the United States, including at its Seattle headquarters, and the company is also reviewing corporate roles abroad, according to a statement released Friday. Starbucks declined to specify which departments will be affected by the job cuts.
Background on Layoffs
This round of layoffs follows the elimination of more than 2,000 corporate roles, including cuts made as recently as last month. The coffee chain is targeting $2 billion in cost savings over two years as part of a plan led by Chief Executive Officer Brian Niccol. Starbucks is rebounding from a prolonged sales slump by introducing new products, ramping up marketing efforts, and improving order accuracy and speed.
Regional Office Closures
Starbucks will also close smaller regional offices in Atlanta, Chicago, Dallas, and Burbank, California, which served as hubs for staff supporting stores in those regions. Most employees from those offices will transition to remote work. The company is moving some corporate staff to Nashville, Tennessee, as part of efforts to control costs. Nashville offers lower taxes and salaries, proximity to suppliers, and access to regions where Starbucks plans to expand. The company is investing $100 million in the Nashville office, which will eventually house 2,000 workers.
Restructuring Charges
Starbucks expects to incur $400 million in restructuring charges, including $280 million in non-cash charges related to a review of its Reserve and Roastery store locations and changes to corporate offices. The remaining $120 million will be cash charges, mostly for employee separation benefits.
“Leaders have taken a hard look at their respective functions to further sharpen focus, prioritize work, reduce complexity and lower costs,” a Starbucks spokesperson said in a statement.
