Starbucks says it plans an unspecified number of layoffs as it restructures its corporate staff

ByDEE-ANN DURBIN AP business writer

Starbucks said Friday it plans an unspecified number of layoffs as it restructures its corporate staff.

In a letter to employees, Starbucks Chairman and CEO Brian Niccol said the Seattle coffee giant needs to ensure all work has a clear and accountable owner who can make decisions. The company also needs to reduce complexity and silos.

“Our size and structure can slow us down, with too many layers, managers of small teams and roles focused primarily on coordinating work,” Niccol wrote.

The layoffs won’t impact baristas in Starbucks’ stores. Niccol said decisions will be communicated by early March.

“I do not take these decisions lightly, and I appreciate that this will create uncertainty and concern between now and then,” Niccol wrote. “I wanted to be transparent about our progress and our plans and ensure that you hear about this work directly from me.”

Starbucks has approximately 16,000 employees working in corporate support, roasting, distribution, warehousing and store development, including 10,000 in the U.S. and 6,000 in other countries. Starbucks said the layoffs will come from corporate support staff, but it won’t say how many people work in those roles.

The company employs a total of 361,000 people worldwide.

Starbucks saw disappointing sales over the last year as U.S. customers pulled back on their spending and customers in China flocked to lower-priced rivals.

In September, the company brought in Niccol, an experienced marketer who previously led Taco Bell and Chipotle, to help it turn things around.

___

This story was first published on Jan. 17, 2025. It was updated on Jan. 20, 2025 to make clear that the 16,000 employees Starbucks has in corporate roles includes support staff, roasters, warehousing, distribution and store development.