“Leaders have taken a hard look at their respective functions to further sharpen focus, prioritize work, reduce complexity, and lower costs.”
Starbucks is cutting another 300 corporate support jobs in the United States and consolidating office space as the coffee giant continues a sweeping restructuring effort while simultaneously expanding operations in Nashville.
In a statement provided to The Ari Hoffman Show on Talk Radio 570 KVI, a Starbucks spokesperson said the company is taking “further action” under its “Back to Starbucks” strategy to return the business to “durable, profitable growth.”
"Leaders have taken a hard look at their respective functions to further sharpen focus, prioritize work, reduce complexity, and lower costs,” the spokesperson said. “As a result, we’re eliminating approximately 300 U.S. support roles.”
The company also confirmed it is “streamlining” its real estate footprint by consolidating U.S. office space and reassessing lease commitments. “We are streamlining our real estate footprint including consolidating U.S. regional support office space and taking several other steps with leases and lease commitments.”
The announcement follows Starbucks’ recent decision to invest $100 million in Nashville, Tennessee, where the company plans to move or hire 2,000 workers over the next five years while maintaining Seattle as its formal headquarters. At the same time, Starbucks has steadily reduced its footprint in Seattle, closing multiple stores, shutting down high-profile Reserve Roasteries, laying off workers, and reportedly vacating at least one Seattle-area office space.
According to an SEC filing, Starbucks expects the latest restructuring actions to generate roughly $400 million in charges. That includes $280 million in non-cash impairment charges tied to long-lived assets and lease-related costs, largely connected to reassessments involving Starbucks Reserve and Roastery locations and the company’s non-retail office portfolio, as well as $120 million in cash charges related primarily to employee separation costs. The company also confirmed it is reviewing its international support organization and expects additional job impacts outside the United States.
The latest cuts come amid broader questions about Seattle’s business climate as several companies reduce or shift growth outside Washington. Starbucks founder Howard Schultz recently warned in a Wall Street Journal op-ed that Seattle’s economy had become “fractured,” criticizing what he called Mayor Katie Wilson’s “socialist rhetoric” and warning that employers increasingly feel demonized by local leadership.
Meanwhile, other Washington-based companies, including Janicki Industries and Tacoma manufacturer Delta Camshaft, have announced plans to expand or relocate outside the state, citing taxes, regulations, crime, and rising operating costs.
Downtown Seattle office vacancy rates have also climbed above 35 percent as Amazon, Microsoft, Meta, and other major employers continue reducing office footprints following years of rapid expansion.
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