Starbucks has announced a significant restructuring plan that includes the layoff of approximately 900 corporate employees and the closure of underperforming stores across the U.S. The move is part of a broader effort to streamline operations and refocus on long-term growth, according to company executives.
The layoffs will primarily affect roles at the company’s Seattle headquarters and regional offices, though retail locations will also see changes as Starbucks evaluates store performance and customer demand.
Store Closures and Operational Changes
While Starbucks has not released a full list of affected locations, the closures will target stores that have struggled with foot traffic, staffing, or profitability. CNBC reports that the company is also looking to reinvest in high-performing locations and expand drive-thru and mobile order capabilities, which have seen increased demand post-pandemic.
CEO Laxman Narasimhan emphasized that the restructuring is not a retreat, but a recalibration:
“We’re making these changes to better serve our partners and customers, and to position Starbucks for the future.”
Impact on Employees
The 900 corporate roles being eliminated represent roughly 10% of Starbucks’ non-retail workforce. Affected employees will receive severance packages and career transition support. The company has stated that no barista or in-store hourly roles are part of this round of layoffs.
According to TODAY, Starbucks will also be consolidating some teams and shifting resources toward technology, supply chain efficiency, and customer experience innovation.
What It Means for Customers
Despite the shakeup, Starbucks says customers won’t see major disruptions to their daily coffee routines. Popular menu items and seasonal launches—including the current fall lineup—will continue as planned. However, some customers may notice changes in store hours, staffing, or availability of certain locations.
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