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Starbucks cuts 300 corporate jobs across the US as Niccol deepens turnaround push

Starbucks is cutting 300 US corporate jobs, closing support offices and facing $400 million in restructuring charges as Brian Niccol deepens the turnaround push.

By Sarwesh Sri Bardhan

May 16, 2026 21:28 IST

Starbucks said on Friday that it will cut 300 U.S. corporate jobs and shut several regional support offices as it steps up its effort to restore “durable, profitable growth.”

The layoffs will not affect coffeehouse employees, but they mark another major round of restructuring under chief executive Brian Niccol, who took over in 2024. The company said the changes are intended to “sharpen focus, prioritize work, reduce complexity, and lower costs.”

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The back office feels the draught

Starbucks said the affected offices include locations in Atlanta, Burbank, Chicago, and Dallas, while international support functions are also under review and could see more cuts.

In a statement reported by CNBC, 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.”

The company’s coffeehouse staff are not part of the layoffs.

A tidy sum for the purge

The new round of job cuts comes with a sizeable financial bill.

Starbucks said the restructuring charges will total $400 million, including about $120 million in severance benefits for terminated employees and roughly $280 million tied to the impairment of long-lived assets, mainly real estate associated with reserve and roastery locations.

The company is also reducing the book value of some non-retail support facilities. The move adds to a broader cost-cutting campaign that has defined Niccol’s first months in charge, even as the business continues to invest in store operations and staffing.

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A trim here, a wager there

Starbucks has been trying to balance a turnaround strategy with ongoing spending on its business.

The company recently announced a $100 million investment to expand in the U.S. Southeast, including a new support office in Nashville that it expects to house 2,000 employees in over five years.

Niccol’s approach has centered on simplifying the company’s structure while improving the customer experience inside stores, and Friday’s layoffs show that the push to trim costs is still far from over.

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