The impacted roles are across all corporate divisions. Starbucks will also shutter offices in Chicago, Atlanta and Burbank, California.
SEATTLE — Starbucks will lay off about 300 employees and shutter three satellite offices as it looks for cost savings as part of its efforts to bolster the company.
The coffee giant announced the layoffs Friday. The impacted support roles are across all corporate divisions in Seattle and the U.S. Jaci Anderson, Starbucks director of global communications, said the impacted roles outside Seattle are primarily remote jobs.
No coffeehouse jobs will be impacted.
In addition to the layoffs, Starbucks will close corporate offices in Chicago, Atlanta and Burbank, California. Anderson said this was underutilized office space, and the vast majority of employees who work out of those offices are expected to become remote employees.
The company will retain offices in New York City and Nashville, which Starbucks announced in April will house 2,000 jobs.
Some corporate roles in Seattle are expected to be relocated to the new Nashville hub, but Anderson said the layoffs announced Friday are completely separate from that transition.
Starbucks will next examine its international support organization. It expects additional layoffs in that area, although a specific timeline and number of jobs has not been determined.
The changes are expected to result in $400 million of restructuring charges, including $120 million in employee separation benefits. There are expected to be $280 million of non-cash charges due to impairment of long-lived assets, such as right-of-use lease assets.
Anderson said the changes come on the heels of a “significant” quarter for Starbucks. On an April 28 earnings call, CEO Brian Niccol said second quarter company revenue was $9.5 billion, which is up 8% from last year.
“It really is about making sure that momentum continues,” Anderson said. “We are returning the company to becoming durable and profitable company.”
On May 8, Starbucks also announced 61 employees would be laid off, primarily in technical fields. The layoffs announced Friday are in addition to those previously cut positions.
To ensure diverse coverage and expert insight across a wide range of topics, our publication features contributions from multiple staff writers with varied areas of expertise.
