Starbucks is trying to bring customers back to its coffeehouses, but the company’s turnaround is coming at the cost of yet another painful message for its workers.
Away from the coffee houses, this time the Seattle-based coffee giant is going for corporate jobs and closing several regional support offices as it continues on the path to reshape the company under CEO Brian Niccol’s “Back to Starbucks” strategy.
A Starbucks spokesperson confirmed to TheStreet that the company is eliminating approximately 300 US support roles as part of its Back to Starbucks strategy.
The cuts do not affect coffeehouse employees, but they add to a growing list of workforce reductions and store changes that have followed Starbucks’ attempt to simplify the company and rebuild customer trust.
In a recent SEC filing, Starbucks outlined its broader restructuring plan, noting that its board approved additional actions on May 13 under the Back to Starbucks strategy, which focuses on revitalizing coffeehouses and improving the customer experience.
Starbucks cuts follow earlier layoffs
The latest reductions are not the first major job cuts under Starbucks’ turnaround plan.
In February 2025, Starbucks said it would eliminate 1,100 support partner roles (employees) and several hundred additional open and unfilled positions.
In the memo shared with employees, CEO Niccol said of the decision, “We are simplifying our structure, removing layers and duplication and creating smaller, more nimble teams.”
More Layoffs:
- E-commerce giant shuts down office as layoffs rise
- Oracle signals massive AI opportunity as layoffs hit
- AI won’t trigger mass layoffs yet, Fed says
Later in September 2025, Niccol said that the company has identified coffeehouses where “we’re unable to create the physical environment our customers and partners expect, or where we don’t see a path to financial performance, and these locations will be closed.”
And this would mean further reducing headcount and expenses by cutting 900 non-retail partner roles. In the memo, Niccol added that the company will invest in “green apron partner hours, more partners in stores, exceptional customer service, elevated coffeehouse designs, and innovation to create the future.”
Now, in May 2026, the company is further reducing 300 corporate positions “to capture cost savings by further streamlining its domestic and international support organization and non-retail facilities,” said the SEC filing.
Starbucks takes on $400 million charge
The financial scale of the restructuring is clearer in the SEC filing.
Starbucks said it is pursuing $2 billion in cost-savings initiatives and that its international business shifts toward a model in which nearly 90% of its coffeehouses are licensed.
Under the newly approved restructuring plan, the coffee giant also plans to reduce operational complexity at its Starbucks Reserve and Roastery locations.
This plan will carry about $400 million in restructuring charges, which are further divided into:
- Non-cash charges: Around $280 million to come from non-cash charges tied to long-lived asset impairments, including lease assets.
- Cash charges: Remaining $120 million in cash charges related to employee separation benefits and further optimization of global support organization.
Additionally, Starbucks is closing regional support offices in Atlanta, Burbank, Chicago, and Dallas while reviewing the international support organization, according to Reuters.
This could lead to additional job cuts outside the US.
A Starbucks spokesperson noted, “We are streamlining our real estate footprint, including consolidating U.S. regional support office space and taking several other steps with leases and lease commitments.”
These layoffs will not impact its coffeehouse portfolio.
The company expects these changes to be completed by the end of fiscal year 2026.
Starbucks closes Washington coffeehouses
In separate Worker Adjustment and Retraining Notification (WARN) notices filed in late March and May in Washington shows that the restructuring has already affected both coffee employees and support workers.
In a March 27 WARN notice, Starbucks mentioned the total closure of 5 stores in Seattle, resulting in 69 layoffs.
The closed store includes:
- Metropolitan Park East
- 1101 Madison St
- Seattle Center
- 4147 University Way Avenue
- Secure Access SCH Ocean-Floor 7
The impacted employees include baristas and shift supervisors, and several of the affected locations were unionized.
Further, in the May 7 WARN notice, Starbucks noted that, as part of a “reorganization of the technology department” at the Starbucks Support Center located at 2401 Utah Ave, Seattle, WA, 61 employees will be laid off.
The separations will begin on June 20, 2026, and will be completed by August 28, 2026.
None of the affected employees is represented by a union, and they include roles such as Architect Lead, Cybersecurity Analyst, Director, Manager Engineer, Program Manager, and Systems Analyst, among others.
This May 7 layoff of technology roles is in addition to the 300 reduction, a Starbucks spokesperson confirmed to TheStreet.
Costs still weigh on Starbucks
In its recent Q2 2026 earnings report, Starbucks reported 7.1% increase in net revenues in North America to $6.9 billion this quarter.
But operating income fell to $679.9 million from $748.3 million a year earlier. Operating margin also narrowed to 9.9% from 11.6% as Starbucks cited labor investments tied to Back to Starbucks, product mix shifts, tariffs, and elevated coffee costs.
This means the company is investing in coffeehouses to improve service, speed, and the customer experience while cutting costs in its corporate structure.
And even as Starbucks continues to cut jobs and close offices, it is investing in other parts of the business.
It recently announced a $100 million investment to establish a new corporate office in Nashville, Tennessee, which is expected to support up to 2,000 jobs over the next several years. The Nashville office will complement its Seattle headquarters and support growth across the Southeast.
Moreover, it finalized its joint venture with Boyu Capital in China, giving Boyu a 60% stake in Starbucks’ retail operations in China. This joint venture oversees about 8,000 company-operated coffeehouses today, with a long-term goal of reaching as many as 20,000 locations, thereby reshaping its international business, which could be pivotal to its overall growth.
Overall, the company is set to open 2,00 new net stores across the global company by 2028, with 400 net new U.S company-operated stores.
Related: Mall retail giant closes final store in key city after 26 years
