Starbucks $SBUX said Friday that it is eliminating 300 U.S. corporate jobs and shuttering regional support offices in Atlanta, Burbank, Chicago, and Dallas as part of CEO Brian Niccol's ongoing turnaround effort.
The coffee chain expects $400 million in restructuring charges as it closes offices in Atlanta, Burbank, Chicago, and Dallas
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Starbucks $SBUX said Friday that it is eliminating 300 U.S. corporate jobs and shuttering regional support offices in Atlanta, Burbank, Chicago, and Dallas as part of CEO Brian Niccol's ongoing turnaround effort.
According to an SEC filing, the restructuring will carry a price tag of approximately $400 million — split between $120 million in cash outlays for severance and $280 million in non-cash impairment charges reflecting reduced valuations on office leases and related real estate holdings. Employees in the affected offices who are not laid off will shift to remote work, the company said.
The cuts do not affect coffeehouse workers. Starbucks also said it is reviewing its international support organization and expects additional job losses outside the U.S.
In a statement, a Starbucks spokesperson said: "We are taking further action under the Back to Starbucks strategy, building on our strong business momentum and working to return the company to durable, profitable growth. Leaders have taken a hard look at their respective functions to further sharpen focus, prioritize work, reduce complexity, and lower costs."
This is the third time Starbucks has trimmed its corporate workforce since Niccol took over in September 2024. The first round, in February 2025, saw 1,100 positions eliminated. A second wave followed roughly seven months later — 900 additional non-retail jobs cut as part of a broader $1 billion restructuring that also shuttered more than 400 store locations.
Just days before Friday's announcement, Starbucks had already shed 61 roles at its Seattle headquarters when it reorganized its technology department, per a state filing. That restructuring followed a leadership change atop the technology organization, with Anand Varadarajan joining as CTO in December.
Results for the fiscal second quarter, which covered January through March, showed net income climbing 33% from a year earlier to $511 million. Domestic comparable-store sales rose 7.1%, with transaction volume up 4.3%, marking back-to-back quarters of customer traffic gains at U.S. locations.
The strategy Niccol has pursued centers on the in-store experience — putting more baristas on the floor, bringing back café seating, and refreshing the menu. That investment has weighed on profitability. Reuters reported that operating margins have contracted by nearly half since the initiative launched in late 2024.
A Nashville support office is also in the works, with Starbucks pledging $100 million toward the facility, which the company projects will house as many as 2,000 employees within five years. Regulatory filings show that as of Sept. 28, 2025, the company employed 9,000 people in U.S. non-retail jobs and another 5,000 internationally in regional support functions.
Correction: An earlier version of this story misstated the number of people Starbucks employs in U.S. non-retail jobs. It is 9,000, not 19,000.
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