Starbucks Announces Largest Corporate Restructure in Company History with 1100 Job Cuts

In a significant move that has sent ripples through the corporate world, Starbucks has revealed plans to lay off 1,100 corporate employees whilst closing hundreds of vacant positions. This restructuring initiative, announced on Monday, marks the most extensive reduction in the company’s history.

Chief Executive Officer Brian Niccol, who received £96 million in his initial four months of leadership, outlined the strategic rationale in a staff communication. “Our intent is to operate more efficiently, increase accountability, reduce complexity and drive better integration,” he stated. The global coffee giant currently employs 16,000 corporate staff worldwide, with 10,000 based in the United States.

The restructuring programme, first mentioned in January 2025, stems from Niccol’s assessment that the organisation’s size and structure were impeding operational efficiency. The CEO highlighted concerns about excessive management layers and roles predominantly focused on work coordination rather than execution.

Whilst the cuts target corporate positions, warehouse staff, roasting facilities personnel, and store employees remain unaffected. The reorganisation accompanies additional operational changes, including streamlined service times, menu optimisation, and implementation of new ordering systems.

The announcement arrives amid ongoing labour relations challenges, with Starbucks Workers United representing more than 10,500 employees across 500 unionised stores nationwide. Labour negotiations reached an impasse in late 2024, triggering holiday season strikes as workers demanded improved economic conditions.

The union’s criticism of Niccol’s substantial compensation package adds another layer of complexity to the company’s current transformation journey, highlighting the delicate balance between corporate restructuring and workforce relations.