Starbucks Cuts 300 US Corporate Roles, Incurs $120m Severance and $280m Write-Down
Starbucks will eliminate 300 corporate US roles and incur $120m in severance as it consolidates regional support offices and writes down $280m of real estate value. The restructuring follows Q2 net revenue rising 8.8% to $9.53bn and accompanies a $100m Southeast US investment.
1. Scope of Job Cuts and Costs
Starbucks announced the elimination of 300 corporate positions in the US as part of a regional support restructuring. The company expects to incur $120m in severance expenses related to these cuts, aiming to lower operating costs and simplify its organizational structure.
2. Property Write-Downs
The restructuring includes a $280m write-down of certain real estate assets, primarily affecting reserve and roastery sites along with select non-retail support facilities. This charge reflects lower book values for properties deemed non-strategic to future growth plans.
3. Financial Performance and Future Investments
In the fiscal second quarter ended March 29, Starbucks reported net revenues of $9.53bn, an 8.8% year-over-year increase. The company is also investing $100m to expand its presence in the US Southeast, planning a new support office in Nashville to hire 2,000 employees over five years.