Story perspectives

Starbucks Cuts 300 Jobs, Closes Three Offices Amid $400M Restructuring

5/16/2026

Summary

Starbucks Cuts Jobs

Starbucks will cut 300 corporate jobs and close its Dallas, Chicago and Atlanta offices.
The $400 million restructuring includes $120 million cash separation benefits and will separate employees from June 20 to August 28.
Starbucks laid off 61 Seattle tech staff, intends to shift or add 2,000 workers at a Nashville office within five years, and posted Q2 revenue of $9.5 billion, a 9% increase, while U.S. same-store sales rose 7.1% and transactions grew 4.3%.

Summary

Starbucks Exec Bonuses

Starbucks executives could each receive $6 million in awards if cost-cutting targets are met by 2027.
The board approved the plan last summer, linking payouts directly to the efficiency goals.
Starbucks will write down $280 million of real-estate value, mainly for reserve, roastery, and other non-retail support sites.
The company is reviewing international support units, expects further job cuts outside the U.S., and reports profit margins have halved since the late-2024 turnaround.

History

Historical Context

In April 1993 IBM, after a $8.1 billion loss and $16 billion of cumulative deficits, hired outsider Louis V. Gerstner Jr. as CEO and cut the workforce to about 220,000, eliminating tens of thousands of jobs. The restructuring lifted IBM’s share price and proved aggressive cuts could restore margins. Starbucks now follows suit, cutting 300 corporate roles and tying bonuses to efficiency.

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Starbucks Cuts Jobs

Starbucks will cut 300 corporate jobs and close its Dallas, Chicago and Atlanta offices.
The $400 million restructuring includes $120 million cash separation benefits and will separate employees from June 20 to August 28.
Starbucks laid off 61 Seattle tech staff, intends to shift or add 2,000 workers at a Nashville office within five years, and posted Q2 revenue of $9.5 billion, a 9% increase, while U.S. same-store sales rose 7.1% and transactions grew 4.3%.

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