Starbucks Announces More Layoffs as CEO Brian Niccol Expands Restructuring Plan
Starbucks has announced another round of corporate layoffs, eliminating around 300 U.S. positions and shutting down regional support offices in cities including Atlanta, Chicago, Dallas and Burbank as part of CEO Brian Niccol’s ongoing “Back to Starbucks” turnaround strategy. The move follows earlier workforce reductions in 2025 and is aimed at simplifying operations, reducing costs and improving long-term profitability. The restructuring is expected to cost about $400 million, including severance and office-related expenses. While retail cafe employees will not be affected, the company has also begun reviewing its international corporate workforce, raising the possibility of further job cuts globally. Despite the restructuring, Starbucks recently reported stronger U.S. sales growth and continues investing in expansion initiatives, including a new corporate office hub in Nashville.
Starbucks has announced another round of layoffs as part of its ongoing restructuring and turnaround strategy under CEO Brian Niccol. The coffee giant said it will eliminate around 300 corporate positions in the United States and shut down several regional support offices.
The latest cuts mark the third major round of layoffs since Niccol took over leadership in 2024. Previous restructuring phases included 1,100 job cuts in early 2025, followed by another 900 layoffs later in the year.
Regional offices to shut down
According to reports, Starbucks plans to close support offices in cities including Atlanta, Chicago, Dallas and Burbank as part of efforts to streamline operations and reduce costs. The company, however, said the layoffs will not affect baristas or employees working at Starbucks cafes.
The restructuring is expected to cost Starbucks around $400 million. This includes approximately $120 million in severance expenses and nearly $280 million tied to office space impairments and lease-related costs.
“Back to Starbucks” strategy continues
Starbucks said the move is part of its broader “Back to Starbucks” turnaround plan focused on improving efficiency, simplifying operations and returning the business to long-term profitable growth.
Under Niccol’s leadership, the company has introduced several operational changes, including menu simplification, store redesigns, improved cafe staffing and new product launches aimed at reviving customer traffic.
The company recently reported stronger sales performance in the U.S., with same-store sales rising more than 7% in its latest quarter, supported by higher customer transactions. Analysts say the improvement suggests Starbucks’ recovery efforts are beginning to show results despite ongoing restructuring pressures.
International workforce under review
Starbucks also confirmed that it has started reviewing its international corporate workforce, raising the possibility of additional job reductions outside the United States in the coming months.
As of late 2025, Starbucks reportedly had around 9,000 non-retail employees in the U.S. and another 5,000 workers in international support roles.
Tech sector restructuring continues
The layoffs come amid a broader trend of restructuring across global companies as firms cut costs, simplify operations and increase investment in AI, automation and efficiency-focused initiatives.
Despite the cuts, Starbucks continues to invest in certain expansion plans, including a new corporate office hub in Nashville that could eventually house up to 2,000 employees.
