Starbucks Corporation has announced the elimination of 1,100 corporate jobs as part of a broader restructuring plan aimed at improving efficiency and revitalizing operations.
The layoffs, which represent 7 percent of the company’s global workforce outside its retail stores, are the latest in a series of strategic moves under Chief Executive Officer Brian Niccol, who took over in September 2024 amid declining sales.
The impacted employees will be notified by Tuesday with affected corporate staff asked to work remotely throughout the week. The restructuring does not affect employees working in Starbucks cafes, warehousing, manufacturing, distribution or roasting operations.
Niccol, the former CEO of Chipotle Mexican Grill Inc., had signaled the restructuring plans in January when he mentioned the need to streamline operations and eliminate duplication across departments.
The coffee giant joins other major corporations, including Southwest Airlines, in reducing corporate workforce layers to enhance operational agility.
“I recognize the news is difficult,” Niccol stated in the announcement. “We believe it’s a necessary change to position Starbucks for future success.”
As part of the severance package, impacted employees will continue to receive pay and benefits until May 2, followed by severance payments based on tenure.
The company has also pledged to provide career transition support and other assistance.
The restructuring includes the closure of several hundred open and unfilled corporate positions, reinforcing Starbucks’ focus on cost-cutting measures.
Despite the layoffs, Starbucks’ stock has risen nearly 17 percent in the past year, closely mirroring the S&P 500 Index’s 18 percent gain during the same period.
Return-to-Office Policy Strengthened Amid Corporate Overhaul
In addition to workforce reductions, Starbucks is reinforcing its return-to-office policy. Under the new guidelines, employees at the vice president level and above will be required to work from the company’s Seattle or Toronto headquarters at least three days a week.
Meanwhile, directors and lower-level employees will be allowed to work remotely, though future hires will largely be required to be based in either city.
Niccol has taken aggressive steps to optimize store operations, reversing several leadership changes made by his predecessor and introducing measures such as bringing back condiment bars and limiting store access to paying customers only.
However, the CEO’s own work arrangement, which allows him to travel from his home in California to Seattle using the company’s corporate jet, has drawn criticism from both employees and external observers. Starbucks has defended the arrangement, stating that Niccol will spend most of his time at company headquarters or visiting stores.
With the latest restructuring, Starbucks aims to strengthen its long-term growth strategy, positioning itself for stability amid shifting consumer trends and economic headwinds.
