Starbucks to Cut 300 U.S. Jobs, Close Regional Offices

• The restructuring includes $280 million in noncash charges for asset impairment and $120 million in cash charges for severance, with a review of international corporate workforce underway
• Starbucks has cut approximately 2,300 jobs across three rounds since Niccol became CEO, targeting its 19,000 U.S. nonretail workers and 5,000 international regional support staff
• The turnaround is showing results: U.S. same-store sales grew 7.1% with a 4.3% transaction increase in Q2, marking the second straight quarter of traffic growth

Summary: Starbucks Job Cuts and Office Closures

Key Developments:

Starbucks announced a third round of corporate layoffs under CEO Brian Niccol, eliminating 300 U.S. jobs and closing regional support offices. The coffee giant is also reviewing its international corporate workforce for potential reductions. These cuts do not impact coffeehouse employees.

Financial Impact:

The restructuring will result in $400 million in total charges, including $280 million in noncash charges for asset impairment and $120 million in cash charges related to severance. As of September 28, 2025, Starbucks employed 19,000 U.S. nonretail workers and 5,000 international regional support staff.

Strategic Context:

The layoffs are part of Starbucks' "Back to Starbucks" turnaround strategy aimed at achieving "durable, profitable growth." Since Niccol took leadership, the company has cut approximately 2,300 jobs across three rounds (1,100 in February 2025, 900 subsequently, and 300 announced Friday). The strategy focuses on reducing complexity, prioritizing work, and lowering costs.

Business Performance:

The turnaround appears successful thus far. Starbucks' fiscal Q2 results showed U.S. same-store sales growth of 7.1%, driven by a 4.3% increase in transactions—marking the second consecutive quarter of traffic growth. The company attributes improvement to enhanced cafe operations, new menu offerings, restored seating, and increased staffing at locations.

Market Implications:

Despite significant restructuring costs, the positive momentum in same-store sales and customer traffic suggests Niccol's strategy is gaining traction. The corporate streamlining efforts aim to support long-term profitability while the company continues investing in its core cafe business.