Starbucks announced another round of layoffs on Friday, cutting 300 corporate jobs and shuttering several regional support offices.
In addition to the layoff announcement, Starbucks noted that a review of its international corporate workforce is underway, according to KIRO 7.
The layoffs will impact employees in marketing, human resources, and supply chain management departments. No coffeehouse employees were included in the cuts, nor were any international employees.
The company will close its underused offices in Dallas, Chicago, and Atlanta, among others. Starbucks anticipates the decision will result in $400 million in restructuring charges, which include $120 million in employee separation benefits.
Starbucks lays off 61 more corporate workers in Seattle
On Monday, Starbucks laid off 61 more corporate workers at its Seattle headquarters.
The layoffs were in the company’s technology department and included positions such as cybersecurity analysts, application developers, and systems administrators, according to a worker adjustment and retraining notification (WARN) filing.
The first separations will be on June 20, with all expected to be completed by August 28, the filing stated.
The layoffs come as the coffee giant announced plans to hire or move 2,000 workers to its new Nashville office over the next five years. The 2,000 employees would be more than half of Starbucks’ employees in the Seattle area.
“The Nashville office will be a complement to our global and North America headquarters in Seattle, where we will maintain a large presence,” Sara Kelly, Starbucks’ chief partner officer, wrote in a news release last month.
Starbucks’ cuts extend beyond corporate
In March, 69 workers across five Seattle stores were laid off. The layoffs were from stores previously announced to close and affected baristas and shift supervisors.
“These choices are never easy — especially here at home — but they’re an important part of focusing on what we do best and delivering on our Back to Starbucks strategy,” Starbucks spokesperson Jaci Anderson told The Seattle Times in March.
Four of the five closed stores were a part of “Starbucks Workers United,” a worker-led unionizing effort fighting for higher pay, more hours for employees, and better protections for the staff. But a company spokesperson told The Seattle Times the stores’ union status was not a factor in their shutdown.
In October, it was announced that Starbucks was laying off 974 employees in Seattle and Kent. The layoffs included both retail and non-retail employees, a Starbucks spokesperson told MyNorthwest.
Starbucks sees growth despite layoffs
Despite a series of layoffs, Starbucks posted strong Q2 growth this year. Revenue reached $9.5 billion, a 9% increase from the same quarter last year, according to Starbucks’ quarterly earnings report.
“This quarter marked a milestone for Starbucks — and the turn in our turnaround,” Starbucks CEO Brian Niccol said in a video on the company’s website. “For the first time in more than two years, we delivered growth on both the top line and the bottom line.”
The Seattle-based coffee chain drew more customers for the second straight quarter and raised its outlook for the rest of the year. Niccol noted the company now expects sales to rise at least 5%, up from its earlier projection.
Contributing: Julia Dallas and Frank Sumrall, MyNorthwest; Aaron Granillo, KIRO Newsradio
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