Starbucks announced a major restructuring initiative on Monday that includes the elimination of 1,100 corporate roles across its global support teams.
The move, communicated by Starbucks CEO Brian Niccol in a press release, is part of a strategic plan to streamline operations and enhance efficiency within the company.
Why It Matters
This restructuring marks a significant shift in Starbucks' operational strategy, focusing on reducing complexity and increasing accountability within its corporate structure.
The decision is expected to impact roughly 7 percent of the company's non-retail staff, highlighting Starbucks' broad effort to realign its business model with evolving market demands and consumer expectations.
This comes in the backdrop of Starbucks closing several stores nationwide throughout 2025, amid fluctuating sales and operational challenges.
Starbucks Layoffs 2025
In January, Starbucks first hinted at forthcoming changes, aligning with its "Back to Starbucks" initiative aimed at reinforcing its core coffeehouse experience. The layoffs announced Monday are aimed at creating a leaner organizational structure to support this vision.
Brian Niccol, who assumed the role of CEO last fall, emphasized the need for a more agile operational framework to enhance customer service and store performance.
"We need to reduce silos and duplication of effort. Our size and structure can slow us down," Niccol stated in January, highlighting over-layered management as a key barrier to efficiency.
How Many Employees Does Starbucks Have?
Starbucks has around 16,000 corporate employees, meaning the layoffs would affect just under 7 percent of its corporate workforce.
Starbucks employs roughly 361,000 people globally, with about 211,000 employees in the U.S., per the company's fiscal 2024 annual report.
Starbucks Store Closure 2025 Map
The following Starbucks locations have been closed in 2025 thus far.
Who Is Brian Niccol? Starbucks New CEO
Brian Niccol is the chairman and CEO of Starbucks as of September 2024. He previously led Chipotle Mexican Grill, Inc. as CEO and has held key positions at Taco Bell and Pizza Hut, both divisions of Yum! Brands, Inc.
What People Are Saying
Brian Niccol, chairman and CEO of Starbucks, said in a news release on Monday: "We are simplifying our structure, removing layers and duplication and creating smaller, more nimble teams. Our intent is to operate more efficiently, increase accountability, reduce complexity and drive better integration. All with the goal of being more focused and able to drive greater impact on our priorities."
Charles Krugel, a labor and employment attorney based in Chicago, told Newsweek: "So far, Starbucks' approach seems professional and concise, but the 'devils in the details.' The [press release] hits on most of the major [points], it's short and discusses some big picture logistics like the when and who the specific announcements concerning cuts is coming from. However, when you get down to the details, the legal concerns include: What are the demographics of the employees losing their positions? Is one legally protected class subject to layoff more than any others? If yes, then why?
Along those same lines as the demographic discussion is how were employees selected? Was it an algorithm or human consultants? Were the methods used to make the selections statistically validated? If so, then how? If not, then why not?"
"... This is a good start, but this is only from the top corporate level. Let's see how this plays out at the middle to lower levels."
Jim Sanderson, an analyst at Northcoast Research, told Newsweek: "Relative to the last major layoff in 2018, I believe the level is significant. But we should put this in context, understanding which segments/divisions in the corporation will be impacted and how this fits with the company's long-term turn-around strategy globally."
What Happens Next
Starbucks will notify employees affected by layoffs by midday Tuesday and detail changes in roles and structures throughout the week.
The company plans to continue hiring for key positions, noting commitments to comprehensive support for departing employees, including severance and career transition services.
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