Starbucks is slashing approximately 300 U.S. support roles. The coffee giant is also closing several regional support offices as part of a massive corporate overhaul.
This move is a key component of the "Back to Starbucks" strategy. A spokesperson for the company told FOX Business that they are building on business momentum to return to profitable growth.
"Leaders have taken a hard look at their respective functions to further sharpen focus, prioritize work, reduce complexity, and lower costs," the spokesperson said. "As a result, we’re eliminating approximately 300 U.S. support roles."
The company is also reviewing its international organization. Additional role impacts are expected outside of the United States as the brand shifts its focus.
Starbucks is streamlining its real estate footprint. This plan includes consolidating office space and taking several other steps with leases and lease commitments.
CEO Brian Niccol is pursuing a turnaround strategy focused on the coffeehouse floor. He has prioritized barista staffing and store operations over corporate bloat.
The company recently posted its strongest sales growth in more than two years. However, operating profit margins have fallen by nearly half since late 2024.
This news follows former CEO Howard Schultz’s departure from Washington state. Schultz recently moved to Florida after blasting the socialist leadership and policies in Seattle.
Starbucks expects to pay about $120 million in severance. These benefits will be distributed to the terminated support employees.
The company is also reducing the book value of some real estate. This $280 million reduction includes roastery locations and non-retail support facilities.
Starbucks stock saw a slight bump following the announcement. Shares were up 0.42% to close at 106.40.
The coffee giant remains focused on becoming a world-class licensor. Further cuts may follow as the company attempts to simplify its business and lower costs.