Starbucks to lay off 300 US corporate workers and close regional offices

Key Points:

• Starbucks announced it will lay off 300 corporate employees and close several underused U.S. offices, focusing cuts on support functions like marketing, human resources, and supply chain management, with no impact on coffeehouse employees.
• The company is closing offices in cities including Atlanta, Dallas, and Chicago, while opening a new corporate office in Nashville expected to employ up to 2,000 people within five years.
• These restructuring efforts are projected to incur $400 million in charges, including $120 million for employee separation benefits, as part of ongoing cost reduction and simplification under CEO Brian Niccol.
• Starbucks is investing in its remaining stores by redesigning 1,000 U.S. locations this year to enhance customer experience and hiring more baristas to improve service speed during busy periods.
• The company's turnaround strategy shows positive results, with a 7% increase in U.S. same-store sales in Q1 2024, which CEO Niccol described as a critical turning point in Starbucks' recovery.