Coffee giant Starbucks is slashing about 300 U.S. support roles and closing some regional support offices.
“We are taking further action under the Back to Starbucks strategy, building on our strong business momentum and working to return the company to durable, profitable growth,” a Starbucks spokesperson said in a statement to FOX Business.
“Leaders have taken a hard look at their respective functions to further sharpen focus, prioritize work, reduce complexity, and lower costs. As a result, we’re eliminating approximately 300 U.S. support roles,” the spokesperson said.
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“We are also reviewing our international support organization as we focus on being a world-class licensor and expect additional role impacts outside the U.S.,” the spokesperson noted.
The company is also closing some regional support offices.
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“We are streamlining our real estate footprint including consolidating U.S. regional support office space and taking several other steps with leases and lease commitments,” the spokesperson noted.
Costs have mounted at Starbucks in recent quarters as CEO Brian Niccol pursues the Back to Starbucks turnaround strategy focused on the coffeehouse floor, and which has entailed hefty investments in additional barista staffing. Executives last month touted what they called a milestone in the turnaround as the company posted its strongest sales growth in more than two years, although operating profit margins have fallen by nearly half since the turnaround began in late 2024.
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The company said it expects to pay out about $120 million in severance benefits to terminated employees. It also said it is reducing by $280 million the book value of some real estate, primarily related to its reserve and roastery locations, as well as some non-retail support facilities.
Reuters contributed to this report.
