Photo via Fast Company
Starbucks has announced its third round of corporate layoffs since CEO Brian Niccol took the helm in 2024, cutting 300 U.S. support roles and consolidating regional office space. The decision affects the company's roughly 19,000-person U.S. corporate workforce but leaves retail employees unaffected. The company indicated additional international headcount reductions are forthcoming as it reviews its global support organization.
These cuts are part of Niccol's "Back to Starbucks" initiative, designed to streamline operations, improve customer experiences, and transform store environments into inviting gathering spaces. The restructuring also includes closing approximately 1% of North American locations where the company cannot achieve its operational and financial performance standards.
This marks the third major reduction in 15 months, following 1,100 layoffs in February and 900 in September. Despite workforce reductions, Starbucks' turnaround strategy appears to be gaining traction, with the company reporting its second consecutive quarter of U.S. traffic growth in April and a 7.1% increase in same-store sales.
Wall Street has rewarded the transformation efforts, with Starbucks stock (SBUX) climbing more than 26% since the start of the year and 23% over the past 12 months. The stock currently trades around $105, reflecting investor confidence in the company's efficiency-driven path back to profitability.