Layoffs Hit Starbucks As Chicago Office Closes

CHICAGO, IL — Starbucks is planning to lay off 300 corporate employees nationwide, including at its regional offices in Chicago.

As part of its ongoing turnaround efforts, Starbucks executives announced they plan to close underused offices in Chicago, Atlanta and Dallas, among other cities.

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No coffeehouse employees will be impacted by the layoffs, according to Starbucks. The cuts will mainly affect employees in the company's marketing, human resources and supply chain management departments.

As of now, Starbucks' international employees and offices will remain unaffected, but the company does plan to review its corporate structure outside the U.S.

In a conference call with investors, executives said they expect the move to result in $400 million in restructuring charges, including $120 million in employee separation benefits.

Since Chairman and CEO Brian Niccol joined the company in 2024, Starbucks has been trying to cut costs and simplify operations. Last year, Starbucks laid off 2,000 employees and closed hundreds of stores across the country.

The company's efforts have yielded good results, according to Niccol, with Starbucks reporting a 7 percent increase in same-store sales in the U.S.

"Our focus now is on sustaining our momentum and making our results repeatable and durable, all while delivering a healthy cost structure that supports profitable growth," Niccol said during a conference call with investors. "It's how we turn progress into consistent results."