Starbucks To Lay Off More Than 200 Workers As Streamlining Drive Continues

Starbucks is set to lay off more than 200 corporate employees as the global coffee chain continues to streamline its operations and reduce costs under Chief Executive Brian Niccol's turnaround strategy, according to a report by the Wall Street Journal (WSJ).

The Seattle-based company will cut about 120 jobs in its technology division after employees declined to relocate to Nashville, where Starbucks is developing a new corporate office, the WSJ reported, citing the company.

A further 104 positions will be eliminated from the company's coffeehouse design and development teams, according to the report. The latest reductions were disclosed in a filing in Washington state and will not result in the closure of any Starbucks cafes, the WSJ report said.

The job cuts form part of Starbucks' broader efforts to simplify its business and improve efficiency. The company is reportedly working towards Brian Niccol's target of removing $2 billion in costs by the end of fiscal 2028, while continuing to invest in its core cafe operations.

The coffee chain had already cut roughly 2,000 corporate jobs in 2025, while also eliminating hundreds of vacant positions and closing hundreds of US stores.

Turnaround Efforts Gain Momentum

Starbucks has been working to improve service and operational efficiency across its US stores. The company recently estimated that nearly all of its domestic outlets are fully staffed, while most cafe and drive-through orders are now being completed within four minutes, a target set by Niccol.

The company has also reviewed its store network under the turnaround plan. Locations that are financially underperforming, unsuitable for the desired customer experience or require relocation have come under scrutiny, as per WSJ report.

The latest workforce reduction follows earlier corporate restructuring. Starbucks laid off around 300 US corporate employees earlier this year and shut regional corporate offices in Chicago, Atlanta, Dallas and Burbank, California.

Meanwhile, the company is developing a $100 million corporate office in Nashville that is expected to accommodate around 2,000 employees, including staff working in technology and supply-chain functions, the report said.

Starbucks reported quarterly sales and earnings last month that exceeded analysts' expectations and raised its full-year outlook for same-store sales and earnings. Company executives said the turnaround measures were beginning to show results.