Starbucks Cuts 300 Jobs, Takes $400M Restructuring Charge and Targets $2B Savings
Starbucks will cut 300 U.S. support roles and close four regional offices, incurring $400M in restructuring costs with $280M in asset impairments and $120M in separation benefits. It aims to save $2B by fiscal 2028 through real estate consolidation, coinciding with a 1% stock gain and $6M in executive stock awards.
1. Job Cuts and Office Closures
Starbucks will reduce its global support workforce by cutting 300 U.S. roles and closing four regional offices in Chicago, Atlanta, Dallas and Burbank, while reviewing its international support organization for potential further reductions.
2. Restructuring Charges Breakdown
The company will record $400 million in restructuring charges, comprising $280 million of non-cash impairments on long-lived and lease assets and $120 million of cash separation benefits for affected employees.
3. Cost Savings and Stock Reaction
Management targets $2 billion in cost savings by fiscal 2028 through real estate consolidation and operational streamlining, a plan aligned with a 1% uptick in share price and $6 million in executive stock awards.