Starbucks has announced plans to implement corporate layoffs as part of an ongoing restructuring strategy, with the company expected to reveal the details by early March 2025. The decision comes as part of a broader effort to streamline operations, improve efficiency, and refocus the company’s priorities in an increasingly competitive market.
According to CEO Brian Niccol, the layoffs will impact corporate roles within the company, but will not affect baristas or store-level employees. The restructuring aims to simplify the decision-making process within the company by reducing managerial layers and ensuring that each role has clear ownership and accountability.
“With a clearer structure, we will be able to make faster, more effective decisions that support our long-term growth,” Niccol stated in an internal memo. He emphasized that the company remains committed to its core values, including maintaining its employee-first culture.
The move follows a challenging year for Starbucks, which has faced a slowdown in U.S. customer spending and increased competition from lower-cost rivals in international markets, particularly China. Despite this, Starbucks remains a global leader in the coffeehouse industry, with operations in over 80 countries.
The company currently employs over 360,000 individuals worldwide, with approximately 16,000 working at its corporate offices. The layoffs are expected to be part of an ongoing effort to better align Starbucks’ operations with its evolving business needs.
Starbucks’ stock price has remained relatively steady, closing at $95.13 on the latest trading day, reflecting investor confidence amid the company’s restructuring plans.
As the company moves forward with these changes, employees, industry experts, and shareholders will be closely watching the outcomes. The announcement of specific layoffs and the restructuring plan will come by early March 2025, as Starbucks looks to navigate current market challenges and position itself for sustainable growth.
