Starbucks Announces Further Reduction of Corporate Staff to Enhance Operational Efficiency

Starbucks Continues Cost-Cutting Efforts with Additional 300 Corporate Job Cuts

Starbucks Corp. is cutting an additional 300 corporate jobs, its latest move to hit cost-reduction targets. The positions Starbucks is eliminating are located across the US, including at its Seattle headquarters. The company is also reviewing corporate roles abroad.

As part of its cost-cutting efforts, Starbucks is reducing $2 billion in costs over two years. This is part of Chief Executive Officer Brian Niccol's turnaround plans, which include new products, more marketing, and accurate speedy orders. The company has already cut more than 2,000 corporate roles, including as recently as last month.

In addition to the job cuts, Starbucks will also close smaller regional offices in Atlanta, Chicago, Dallas, and Burbank, California. Most staffers that were in those offices will now work remotely. The company is moving some corporate staff to Nashville as part of efforts to keep a lid on costs. The city is appealing due to Tennessee's lower taxes and salaries.

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The restructuring will incur $400 million in charges, including $280 million of non-cash charges related to a review of its Reserve and Roastery store locations and changes to its corporate offices. The other $120 million will be cash charges mostly linked to employee separation benefits. Starbucks is investing $100 million in the Nashville office, which will eventually house 2,000 workers.

Restructuring Charges Breakdown