Starbucks cuts 300 corporate jobs in turnaround push

Starbucks will eliminate 300 corporate jobs in the United States and close four regional offices as part of its turnaround effort, the company said Friday.

It said it would take about $400 million in charges for expenses related to the office closures and severance pay to employees. None of the layoffs or closures affect its stores.

In an emailed statement, a Starbucks spokesperson said the actions were part of the Seattle-based company’s turnaround strategy and an effort to “return the company to durable, profitable growth.”

Last year, Starbucks eliminated nearly 2,000 corporate jobs and closed hundreds of underperforming stores.

The company said it would review its international corporate organization and that additional cuts at those offices were likely, but it did not specify the timing or how many employees could be affected.

Regional offices will close in Atlanta, Chicago, Dallas and Burbank, California, Starbucks said. Along with its Seattle headquarters, it will maintain offices in New York, Toronto and Coral Gables, Florida, as well as in Nashville, Tennessee, where it is expanding.

The layoffs and office closures are part of an effort by CEO Brian Niccol to put Starbucks on better financial footing. Since taking over in 2024, he has tackled many long-standing customer complaints, from long waits for coffees to a lack of seating in stores.

There are signs that the improvements are bringing customers back. Sales at U.S. stores open for a year or more jumped 7.1% for the quarter that ended March 29, compared with a year earlier. Still, some Wall Street analysts remain wary of the turnaround, noting that last year’s sales were particularly weak, so the comparison was easier, and that some customer traffic moved from stores that were shuttered last fall.

Moreover, Niccol is spending a lot of money to update technology, hire more baristas to make coffee and renovate stores to make them cozier. That, along with higher coffee costs from tariffs, has squeezed operating profits for the company.

This article originally appeared in The New York Times.