Starbucks Cuts 300 Corporate Jobs in Third Round of Layoffs Under Niccol

CNBC reported Friday that Starbucks is eliminating 300 U.S. corporate positions and winding down several regional support offices. The coffee giant framed the Starbucks layoffs as a necessary step toward durable, profitable growth under its ongoing turnaround plan.

Third Round of Cuts Under Niccol

This marks the third wave of corporate job reductions since CEO Brian Niccol assumed leadership at Starbucks. The company confirmed that coffeehouse staff are not affected by the cuts. A review of its international corporate workforce has also been initiated, though no figures were given. A Starbucks spokesperson told CNBC the moves fall under the company’s “Back to Starbucks” strategy, designed to sharpen focus and strip out operational complexity.

The restructuring carries a combined charge of $400 million. Of that total, $280 million relates to noncash impairment of long-lived assets. The remaining $120 million covers cash severance payments tied directly to the departing employees.

A Pattern of Workforce Reductions

Niccol’s tenure has been defined by successive cost-cutting rounds. In February 2025, the company announced the elimination of 1,100 roles, alongside a decision to leave hundreds of open positions unfilled. Seven months after that, a further 900 nonretail workers were let go as part of a broader $1 billion restructuring effort. As of late September 2025, Starbucks employed roughly 19,000 nonretail workers in the U.S. and around 5,000 in international support roles.

The repeated downsizing reflects pressure Niccol inherited. Weakening consumer spending and intensifying competition pushed sales into decline before his arrival. His response has combined operational fixes with significant headcount reductions at the corporate level.

Turnaround Showing Early Results

Despite the pain of restructuring, Starbucks’ underlying business metrics are improving. The company’s most recent quarterly results showed U.S. same-store sales climbing 7.1%, powered by a 4.3% rise in customer transactions. That represented a second consecutive quarter of traffic recovery for U.S. cafes, a signal that Niccol’s operational changes are gaining traction.

Niccol has focused on improving in-cafe experience, refreshing the menu, restoring seating and increasing staffing levels on the shop floor. Speaking alongside the fiscal second-quarter results in April, he described the period as a genuine milestone in the company’s comeback.

Friday’s announcement suggests corporate cost reduction still has further to run, even as customer-facing performance turns the corner.

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