Starbucks to Lay Off 300 More Corporate Employees Amid Ongoing Turnaround

Richard Janvrin
By: Richard Janvrin
Industry
Starbucks to Lay Off 300 More Corporate Employees Amid Ongoing Turnaround

Photo by Flickr, CC0 1.0

Key Takeaways

  • Starbucks will lay off 300 corporate employees while reviewing international workforce operations
  • The company expects roughly $400 million in severance and reassessment-related costs overall
  • CEO Brian Niccol says Starbucks turnaround efforts are driving stronger sales and traffic growth

On Friday, Starbucks announced it'll lay off more corporate employees and shut down some regional support offices as part of its "ongoing turnaround," per CNBC

In all, 300 jobs will be slashed, and the company will also review its international corporate workforce. None of these layoffs is impacting baristas. 

In fact, in April, there was an effort to award bonuses to baristas as part of this turnaround. 

Starbucks To Spend $400 Million on Related Costs

Along with these layoffs, the company will be spending $400 million on severance and reassessment costs. According to CNBC, Starbucks will incur $280 million in noncash charges "related to the impairment of long-lived assets" and also $120 million in cash charges related to job cuts. 

“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,” a Starbucks spokesperson said in a statement to CNBC. “Leaders have taken a hard look at their respective functions to further sharpen focus, prioritize work, reduce complexity, and lower costs.”

Starbucks Reports Improved Sales and Traffic

Brian Niccol became CEO in September 2024, and since then, there have been three rounds of layoffs. In February 2025, months after taking over, he revealed that they'd be cutting 1,100 jobs and not filling many of their open positions. Seven months later, the company cut 900 nonretail jobs as part of its $1 billion restructuring. 

CNBC reports that as of Sept. 28, 2025, Starbucks had 9,000 nonretail employees in the US and 5,000 international employees working in regional support operations. 

Also, per CNBC, under Niccol's leadership, Starbucks has "improved cafe operations, added buzzy new menu items, reintroduced seating to its locations, and beefed up staffing at its coffeehouses." This comes after it was having slumping sales. 

For the latest quarter, Starbucks reported same-store sales growth of 7.1% and a 4.3% increase in transactions.

“This quarter marked a milestone for Starbucks – and the turn in our turnaround,” Niccol said in a video posted alongside the company’s fiscal second-quarter results in April.

Richard Janvrin is a graduate of the University of New Hampshire. He started writing as a teenager before breaking into sports coverage professionally in 2015. From there, he entered the iGaming space in 2018 and has covered numerous aspects, including news, reviews, bonuses/promotions, sweepstakes casinos, legal, and more.

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