Zarah ChoudharyStarbucks has announced 1,100 global job cuts of support roles as part of a major restructuring plan aimed at streamlining operations and positioning the company for future growth.
The announcement, made by CEO Brian Niccol on 24th February, will not affect retail store employees or impact the company’s ongoing investments in store hours.
Instead, the job cuts are focused on non-retail, global support positions as Starbucks seeks to simplify its structure and improve operational efficiency.
The decision follows a comprehensive evaluation of the company’s global support teams, conducted as part of its wider ‘Back to Starbucks’ plan.
The strategy is aimed to strengthen the company’s ability to deliver on key business priorities and secure long-term success.
Alongside the 1,100 job eliminations, Starbucks will also be cutting several hundred open and unfilled roles as part of this restructuring.
Niccol explained: “We are simplifying our structure, removing layers and duplication, and creating smaller, more nimble teams.
“Our goal is to operate more efficiently, increase accountability, and drive better integration, enabling us to focus on our priorities and deliver greater impact.”
He added: “I recognise the news is difficult. It is not a decision the leadership team took lightly. We understand the real effect this has on partners’ lives and their families.”
The company said it was committed to providing comprehensive support for those affected by the job cuts.
This includes severance packages, healthcare benefits, and career transition services to assist employees during the transition.
Niccol stressed that Starbucks would handle the process with “the respect they deserve.”
The notification process began on 24th February, with affected employees set to be informed by midday Tuesday (25th February).
Members of the executive leadership team have already started notifying senior leaders at the vice president level and above, with additional changes to responsibilities and reporting structures expected to be communicated by the end of the week.
Niccol reassured staff that these changes are intended to “position Starbucks for future success — and to ensure we deliver for our green apron partners and the customers they serve.”
The restructuring will also involve changes to leadership expectations, particularly in North America.
From now on, vice president-level leaders and above will be required to be present in Starbucks’ Seattle or Toronto offices at least three days a week.
The company will also maintain a number of ‘in-market’ roles to directly support green apron partners and store operations in specific regions.
While these changes are significant, Niccol confirmed that existing hybrid working arrangements for other roles will remain unchanged.
Employees at director level and below who currently work remotely will continue to do so, although future remote roles will primarily require employees to be based in Seattle or Toronto unless otherwise designated.
In markets outside the United States and Canada, local leadership will provide specific guidance based on regional needs.
Starbucks also confirmed that it will continue hiring for roles that align with the company’s new organisational structure and business priorities.
Affected employees will receive additional information from their regional leaders, including details about severance pay, healthcare coverage, and career transition services.
Starbucks also plans to hold company-wide and departmental meetings in the coming days to discuss the restructuring in greater detail and share more information about the future direction of the global support teams.
Niccol concluded: “Starbucks is what it is today because of the contributions of incredible partners like you. On behalf of the executive leadership team, thank you.
“We appreciate all you’ve done for our company, our partners, and our customers.”
