Starbucks to cut 1,100 corporate jobs globally

Starbucks currently employs approximately 16,000 corporate support employees worldwide | Photo credit: Duo Nguyen 

Starbucks CEO Brian Niccol has confirmed plans to cut 1,100 corporate jobs globally as part of a support staff team restructure announced in January 2025. 
 

In an open letter to staff, Niccol said the ‘difficult decision’ was not one that he and his leadership took lightly but was a ‘necessary change to position Starbucks for future success’. 

‘We are simplifying our structure, removing layers and duplication and creating smaller, more nimble teams. Our intent is to operate more efficiently, increase accountability, reduce complexity and drive better integration,’ Niccol wrote. 

Starbucks currently employs approximately 16,000 corporate support employees worldwide. Staff impacted by the redundancies will be informed on 25 February 2025 and will receive a comprehensive severance package, Niccol added.  

Starbucks is also eliminating several hundred open and unfilled corporate positions. However, redundancies will not impact on in-store teams. 

The announcement follows several key leadership departures at Starbucks since Niccol became CEO in September 2024. North America CEO Michael Conway retired just a week after Niccol joined the Seattle-based coffee chain, with his departure followed by the resignations of Chief Sustainability Officer Michael Kobori and North America President Sarah Trilling, as well as the retirements of Lead Independent Director Mellody Hobson and Starbucks China Chairwoman Belinda Wong. 

In his open letter, Niccol also outlined several steps to improve the efficiency of the coffee chain’s North America leadership teams. This includes those in Vice President positions across the US and Canada having to work from Starbucks’ Seattle or Toronto offices at least three days a week, while hiring for future senior roles will require applicants to be Seattle or Toronto based. 

Simplifying staff structures echoes Niccol’s strategy to reduce complexity in Starbucks’ US stores. As part of plans to re-establish Starbucks as ‘the ‘community coffeehouse’ in the US, Niccol is planning to cut Starbucks’ menu by 30% and has set a target for baristas to serve in-store customers within four minutes. The Seattle-based coffee chain has also reintroduced self-service milk, sugar and condiment bars to reduce the burden on in-store staff. 

Seattle-based Starbucks currently operates 40,200 stores across 88 markets globally, employing over 360,000 staff. In January 2025, the world’s largest coffee chain reported first quarter revenues of $9.4bn, up $3m on the previous quarter, but still flat compared to the same period a year ago.