'Reduce complexity' | Starbucks to cut 1,100 corporate jobs in major restructuring

Starbucks is eliminating 1,100 corporate positions and closing several hundred vacant job postings as part of a major restructuring effort.

The cuts, which were anticipated, do not impact store, warehouse, or roasting employees, mark the largest round of layoffs in the company’s history.

Earlier in the year, as the prospect of layoffs became a reality, while acknowledging the uncertainty the layoffs may create for employees, CEO Brian Niccol stressed the importance of transparency. "I do not take these decisions lightly," he said. "I wanted to ensure you hear about this work directly from me."

Letter to Starbucks staff

In a new letter to staff, Niccol said the decision aims to streamline operations, improve accountability, and reduce complexity.

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“Our intent is to operate more efficiently, increase accountability, reduce complexity, and drive better integration,” Niccol wrote.

Starbucks employs around 16,000 corporate staff globally, with approximately 10,000 based in the US. The layoffs follow Niccol’s January 2025 announcement that the company’s structure had become overly layered, with small teams and too many managerial roles slowing decision-making.

Operational changes and union challenges

Niccol’s broader restructuring strategy also includes measures to improve store service times, streamline the menu, and introduce new ordering algorithms. The company has faced increasing operational pressures, including growing demands from unionized workers.

Since 2021, over 500 Starbucks locations have unionized under Starbucks Workers United, representing more than 10,500 employees. Contract negotiations between the company and the union stalled in late 2024, leading to worker strikes over the holiday season. Employees have been pushing for economic improvements in their first union contract, but talks have yet to yield an agreement.

The union has also criticized Niccol’s compensation, which totaled approximately $96 million in his first four months as CEO. His tenure has included a shift in Starbucks’ approach to labor relations, with unionized stores continuing to push for better terms amid ongoing corporate restructuring.