Starbucks to Lay Off 1,100 Corporate Employees Amid Restructuring

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CEO Brian Niccol’s Turnaround Plan Aims for Efficiency and Growth / Photo by Cheng Xin/Getty Images


Starbucks (SBUX) is set to lay off approximately 1,100 corporate employees this week as part of CEO Brian Niccol’s efforts to streamline operations and drive a company-wide turnaround strategy. The job cuts account for about 7% of Starbucks' corporate workforce and will primarily impact support roles, along with hundreds of unfilled positions across its global operations.

According to an internal memo obtained by Yahoo Finance, affected employees will be informed by Tuesday, February 25. Niccol emphasized that these layoffs are designed to simplify Starbucks’ organizational structure, reducing redundancy while fostering a more agile and accountable workforce. By eliminating excessive layers within the company, Starbucks aims to accelerate decision-making and sharpen its focus on key business priorities.

Niccol assured impacted employees that they would receive a "comprehensive severance package," which includes salary and benefits coverage until at least May 2. Additional severance benefits will be determined by tenure, alongside six months of healthcare coverage via COBRA assistance and access to personalized career coaching services.

Starbucks, which had approximately 361,000 global employees as of September, remains largely unaffected in its frontline workforce. Baristas, shift supervisors, and employees involved in roasting, manufacturing, warehousing, and distribution will not be impacted by this restructuring. Instead, the layoffs will be concentrated within the company’s 16,000 corporate support roles.

As part of the structural overhaul, Niccol also outlined changes to in-office attendance policies for leadership. North American executives at the vice president level and above will be required to work in-person at Starbucks’ Seattle headquarters or its Toronto office at least three days per week. However, the company will maintain its current hybrid work policy for existing employees, while future hires for director-level and below roles will be required to be based in Seattle or Toronto, barring enterprise-approved remote positions.

This restructuring comes shortly after Starbucks reported its first quarterly earnings under Niccol’s leadership, reflecting both progress and ongoing challenges. The company met its modest Q1 2025 expectations but acknowledged the need for continued operational improvements. Revenue remained flat compared to the previous year, while earnings per share fell 23% to $0.69 due to increased investments in Niccol’s transformation plan.

Furthermore, global same-store sales declined by 4%, while foot traffic decreased by 6%, marking the fourth consecutive quarter of downturns. These challenges underscore Starbucks' urgent need for strategic adjustments, including refining core product offerings, optimizing pricing strategies, and enhancing service speed to reinvigorate customer engagement and financial performance.

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