Starbucks Corporation is laying off more than 200 corporate employees as CEO Brian Niccol continues to streamline the company under its broader "Back to Starbucks" turnaround strategy. The latest cuts include about 120 technology employees who did not relocate to Nashville, along with 104 positions in coffeehouse design and development. The layoffs are focused on corporate operations and do not involve additional café closures. The move is part of Starbucks' plan to eliminate roughly $2 billion in costs by fiscal 2028 while redirecting resources toward its coffeehouses and customer experience. In the latest quarter, Starbucks reported an 8.1% increase in North America comparable sales, while operating income increased to $1.0 billion from $918.7 million a year earlier. However, the company expects roughly $400 million of restructuring charges, including employee separation costs and asset impairments, which could weigh on reported earnings during the transition.
Starbucks CorporationLayoffs and restructuring charges may weigh on earnings, but cost savings and strong sales support turnaround.
Target Corporation