Starbucks lays off 300 employees, closes regional offices

Starbucks is continuing its aggressive corporate restructuring, announcing Friday that it will eliminate 300 U.S. corporate roles and shutter several regional support offices. The move marks the latest development under CEO Brian Niccol as he pushes to streamline operations and reinvigorate the coffee giant's performance.

Restructuring and Costs

According to the company, these cutbacks are expected to cost approximately $400 million. This total includes $280 million in noncash charges related to asset impairment, alongside $120 million in cash expenses tied specifically to the office closures and staffing reductions.

A spokesperson for the company explained to CNBC that the measures are part of the ongoing Back to Starbucks strategy. The company is aiming to sharpen its focus, prioritize key projects, and reduce organizational complexity. It is important to note that these corporate layoffs do not impact employees working in Starbucks retail coffeehouses.

A Pattern of Reductions

This announcement represents the third round of workforce cuts since Niccol took the helm. Previous actions included the elimination of 1,100 jobs in February 2025, followed by the cutting of 900 nonretail positions seven months later as part of a $1 billion restructuring effort. Additionally, the company has begun a review of its international corporate workforce, though no specific cuts have been confirmed for those teams yet.

The Path to Growth

Niccol remains focused on a broader turnaround, directing efforts toward enhancing cafe operations, expanding the menu, and boosting retail staffing to combat rising competition. While the corporate side faces consolidation, there are signs of life in the retail sector: Starbucks reported that U.S. same-store sales rose 7.1% in the most recent quarter, supported by a 4.3% jump in transactions.

"This quarter marked a milestone for Starbucks – and the turn in our turnaround," Niccol noted in a video accompanying the company's fiscal second-quarter results this past April.