Starbucks Layoff Wave Unstoppable, Global Branches Under Threat

A wave of layoffs at Starbucks has returned with the cutting of 300 corporate positions in the US. The company has pledged to pay $120 million in severance and reduce the book value of its property by $280 million. Since its transformation programme began, Starbucks has conducted several rounds of layoffs, including the termination of 1,100 corporate employees announced in February last year.

Starbucks announced in the early hours of Friday (15/05/2026) that the company will lay off 300 corporate employees in the United States working in regional support offices. This move is part of the company’s efforts to return to achieving “sustainable and profitable growth.” The company stated it will consolidate several regional support offices in the US, including closing several offices in Atlanta, Burbank, Chicago, and Dallas. Starbucks also indicated it is reviewing its international support organisation and anticipates further job cuts outside the US.

According to the company, the move is part of an ongoing effort to “sharpen focus, prioritise work, reduce complexity, and suppress costs.” Starbucks emphasised that this policy will not affect the operations of its coffee outlets. In recent quarters, Starbucks’ operating costs have increased as CEO Brian Niccol implements a business transformation strategy focused on store operations. This strategy includes significant investment to increase barista staffing. Last month, Starbucks executives noted that the company had reached a significant milestone in the transformation process after recording its strongest sales growth in over two years. However, the company’s operating profit margins have fallen by almost half since the transformation began in late 2024.