Starbucks is cutting 252 US corporate employees from its Seattle headquarters and remote positions, according to a state regulatory filing. The layoffs, part of CEO Brian Niccol's turnaround strategy, will begin July 17, 2026, and continue through February 2027.
Affected Roles and Locations
The cuts primarily impact support center staff at the downtown Seattle headquarters. Senior roles, including financial analysts, legal specialists, and nine vice presidents, are not spared. Starbucks will maintain support offices in Seattle, New York, and its new Nashville hub, where it recently leased most of a six-story office building.
The affected employees are not unionized and cannot use seniority to replace other workers, the notice stated.
Turnaround Plan and Costs
Starbucks announced on Friday that the job losses are part of its plan to cut costs, simplify operations, and return to stronger profits. Baristas and other coffee shop workers are not affected. The company has also begun reviewing its international corporate workforce, raising the possibility of further cuts.
A Starbucks spokesperson told CNBC: 'We are taking further action under the Back to Starbucks strategy, building on our strong business momentum and working to return the company to durable, profitable growth. Leaders have taken a hard look at their respective functions to further sharpen focus, prioritize work, reduce complexity, and lower costs.'
Severance expenses and office footprint reassessment will result in roughly $400 million in restructuring charges, including $280 million in noncash charges for asset impairment and $120 million in cash charges for layoffs.
Previous Rounds and Context
This is the third round of job cuts since Niccol took over. Starbucks cut 1,100 jobs in February 2025 and eliminated 900 nonretail positions seven months later as part of a $1 billion restructuring plan.
The layoffs come amid concerns about Seattle's economic climate. Socialist Mayor Katie Wilson has joked about wealthy residents leaving after Washington state's new 10% tax on individuals earning over $1 million annually. Starbucks previously announced it would relocate about 2,000 corporate jobs from Seattle to Nashville.
Crime issues have also raised fears, with Wilson allegedly telling police not to arrest people for illegal drug use on the streets. A local named Brandon, who lives on the streets, told a reporter that Wilson's stance was 'cool' and recalled similar unrest during COVID.
