The coffee chain giant revealed Friday morning it will eliminate 300 corporate positions across its U.S. regional support centers as the company works toward what it calls sustainable and profitable expansion.
As part of the restructuring, the Seattle-based company will merge several U.S. regional support centers and shut down facilities in Atlanta, Burbank, Chicago and Dallas. Leadership indicated they’re also examining their international support structure and anticipate additional workforce reductions beyond U.S. borders.
According to company officials, these changes represent part of a continuing initiative to “sharpen focus, prioritize work, reduce complexity, and lower costs.” The company emphasized that the restructuring will not affect its retail locations.
The coffee retailer has faced rising expenses in recent quarters as CEO Brian Niccol implements a transformation strategy centered on improving the customer experience, which has required significant investment in additional barista personnel. Company leadership highlighted last month what they described as a turning point in their recovery efforts, reporting the strongest revenue increases in over two years, though operational profit margins have dropped by nearly 50% since the transformation launched in late 2024.
The corporation expects to distribute approximately $120 million in separation packages to affected workers. Additionally, the company plans to reduce the recorded value of certain properties by $280 million, primarily affecting reserve and roastery sites along with select non-retail support facilities.
Last month, the company revealed plans for a $100 million investment to grow its Southeast operations, including opening a new support center in Nashville, Tennessee, where officials project housing 2,000 workers within five years.
Under an incentive program the company’s board approved last summer, senior executives could each receive $6 million in bonuses if specific cost-reduction targets are achieved by 2027.
Corporate staff have experienced multiple workforce reductions since the transformation initiative started, including the elimination of 1,100 corporate positions announced in February of last year.
