Starbucks to lay off 300 US corporate workers
· Michael West
Starbucks says it is laying off 300 corporate employees and closing some offices in the United States as part of its ongoing turnaround.
Visit somethingsdifferent.biz for more information.
No coffeehouse employees are affected, the company said.
The cuts will affect employees in support functions like marketing, human resources and supply chain management.
No international employees are affected but Starbucks said it was also reviewing its corporate structure outside the US.
Starbucks said itis also closing underused offices in Atlanta, Dallas, Chicago and other cities.
The Seattle-based company recently announced that it is opening a corporate office in Nashville, Tennessee, that will employ up to 2000 people within five years.
Starbucks expects to the moves to result in $US400 million ($A559 million) in restructuring charges, including $US120 million in employee separation benefits.
Starbucks has been trying to reduce costs and complexity under chairman and CEO Brian Niccol, who joined the company in 2024.
Last year, the company laid off 2000 corporate employees and closed hundreds of stores in the US, Canada and Europe.
Niccol said last month that the simplified structure is helping the company innovate more quickly.
Starbucks is also investing in its remaining stores to improve customers’ experience.
It plans to redesign 1000 US stores this year to give them a cosier, more comfortable feel, and it is also hiring baristas to ensure faster service during busy times.
The efforts appear to be paying off.
In the January-March period, Starbucks said its US same-store sales, or sales at locations open at least a year, jumped seven per cent.
Niccol called the quarter “the turn in our turnaround”.
“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.”