The coffee chain giant announced Friday that it will eliminate 300 corporate positions and shut down multiple regional offices as part of its continuing business restructuring efforts.
Store workers will not be impacted by these job cuts, according to company officials. The workforce reductions will target staff in administrative departments including marketing, human resources and supply chain management. International workers are not currently affected, though the company indicated it is examining its corporate organization structure beyond U.S. borders.
The coffee retailer revealed it will shutter underutilized facilities in Atlanta, Dallas, Chicago and additional cities. The Seattle-headquartered corporation recently revealed plans for a new corporate facility in Nashville, Tennessee, which is expected to house up to 2,000 workers over the next five years.
Company officials project these changes will generate $400 million in restructuring expenses, with $120 million allocated for employee severance packages.
The coffee company has been working to cut expenses and streamline operations under Chairman and CEO Brian Niccol, who came aboard in 2024. During the previous year, the business eliminated 2,000 corporate positions and shuttered hundreds of locations across the U.S., Canada and Europe.
Niccol stated last month that the streamlined organizational structure is enabling faster innovation within the company. The corporation is also putting money into its existing locations to enhance customer experiences. Plans include redesigning 1,000 U.S. locations this year to create a warmer, more inviting atmosphere, while also bringing on additional baristas to speed up service during peak hours.
These initiatives seem to be showing results. During the January-March timeframe, the company reported that U.S. same-store sales, measuring performance at locations operating for at least one year, increased by 7%. Niccol described this quarter as “the turn in our turnaround.”
“Our focus now is on sustaining our momentum and making our results repeatable and durable, all while delivering a healthy cost structure that supports profitable growth,” Niccol said during a conference call with investors. “It’s how we turn progress into consistent results.”
