Starbucks Cuts 224 Corporate Jobs as Part of Turnaround Plan
The coffee giant just announced another round of job cuts affecting hundreds of office workers, and some did not see it coming.
Starbucks Files Layoff Notice for 224 Workers
Starbucks is laying off 224 workers across the company's Seattle headquarters and remote positions, according to a WARN filing.
About 120 of these separations involve workers from the IT team who declined the opportunity to relocate from Seattle, Washington, to Nashville, Tennessee.
The remaining 104 cuts come from a team that oversees the design and construction of its shops.
Layoffs will take effect on October 19 and be completed by November.
Starbucks says layoffs are not part of a new restructuring, but instead the conclusion of the previously announced reorganization. The company had warned employees earlier this year that these changes were coming.
Why Is Starbucks Making These Cuts?
This is part of CEO Brian Niccol's turnaround strategy to reduce $2 billion in costs by 2028. This includes ongoing restructuring and a relocation to a new HQ in Nashville.
Starbucks is building a $100 million brand-new regional headquarters in Nashville, Tennessee. The new Nashville regional corporate office will eventually house about 2,000 employees, but the primary headquarters will stay in Seattle.
Not everyone wants to move to a different city. For the 120 workers who said no to the move, it means losing their jobs.
But the other major reason is lower sales. Sales have been flat or declining. That is why Niccol was brought in as CEO in September 2024, and that is why these layoffs have been happening for the last two years.
Last year, Starbucks moved to close some underperforming stores and cut 900 non-retail partner roles, while also freezing many open positions as it restructured. They also eliminated 300 corporate jobs earlier this year and closed four regional offices as part of its turnaround effort.
They will likely announce more changes as this turnaround plan continues.
What About the Workers Who Lost Jobs?
The direct impact is on the 224 people losing their jobs. Many worked in design, technology, and support roles. They now need to find new jobs.
They will surely receive severance benefits, but Starbucks has not publicly disclosed the exact package for this group.
For other Starbucks corporate employees, this sends a message. The company is serious about efficiency. If your job does not directly improve store operations or customer experience, it might be at risk.
