The company said the job cuts affect its regional support operations, with offices in cities including Atlanta, Burbank, Chicago, and Dallas among those being consolidated or shut down. The changes are part of an effort to simplify operations, reduce costs, and focus more on core business performance, News.Az reports, citing Reuters.
Starbucks also indicated that it is reviewing its international support structure, suggesting additional job reductions outside the United States may follow.
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As part of the restructuring, the company expects to incur about $120 million in severance-related costs. It will also reduce the book value of certain real estate assets by approximately $280 million, including reserve and roastery locations and other non-retail facilities.
The moves come amid an ongoing turnaround effort led by CEO Brian Niccol, who has focused on improving in-store operations and customer experience while investing in additional staffing at café level. Although the company recently reported stronger sales growth, profitability has remained under pressure due to higher operating costs.
Despite the cuts, Starbucks continues to expand in other areas, including a planned new support hub in Nashville, Tennessee, which is expected to employ thousands of workers over the coming years.
The latest restructuring adds to a series of workforce reductions at the company over the past year as it adjusts its global operations and cost structure in response to shifting financial priorities.
