Starbucks (SBUX) stock edged up around 1% on Friday after the company announced it is laying off 300 U.S. corporate workers and closing several regional offices as part of CEO Brian Niccol’s ongoing turnaround effort.
The affected roles are based in Seattle and remote positions across the country. Fields hit include technology, marketing, finance, and research and development. Retail staff are not affected.
Starbucks is also shutting regional corporate offices in Chicago, Atlanta, Dallas, and Burbank, California. It will keep offices in New York, Toronto, Coral Gables, and its Seattle headquarters, plus a new Nashville hub.
The company said it expects to incur $400 million in restructuring charges tied to these moves. Of that, $280 million are non-cash charges from impairments on long-lived assets, including right-of-use lease assets.
The remaining $120 million in cash charges are mainly related to employee separation costs. None of these charges relate to Starbucks’ actual coffeehouse portfolio.
The cuts are part of a broader goal to slash $2 billion in costs by the end of fiscal year 2028. That savings target is meant to offset hundreds of millions in planned investment into cafe operations.
Starbucks confirmed it is also reviewing its international support organization. The company said it “expects additional role impacts outside the U.S.” as it focuses on becoming a “world-class licensor.”
A spokesperson told Investing.com the company is also “streamlining its real estate footprint” and reviewing lease commitments globally.
This isn’t the first round of cuts under Niccol. Last year, Starbucks laid off around 2,000 corporate employees across two separate rounds and closed hundreds of U.S. stores.
Despite the cuts, the company is still spending. Starbucks is opening a new $100 million corporate office in Nashville set to house 2,000 workers. Technology and supply-chain roles are being shifted from Seattle to the new hub.
Some executives are being offered stock bonuses valued at $6 million tied to hitting the cost-reduction targets.
The Nashville office represents a deliberate geographic shift in how Starbucks structures its corporate footprint.
While Seattle remains the headquarters, the company is clearly redistributing roles rather than simply eliminating them across the board.
The $280 million in non-cash charges are mostly tied to a reassessment of its Starbucks Reserve and Roastery locations, along with efforts to optimize non-retail support facilities.
Starbucks said none of the office closures or restructuring charges are connected to its coffeehouse portfolio.
The company’s international review is ongoing, and further announcements on overseas roles are expected.
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