Starbucks cuts 300 corporate jobs, posts $400M restructuring charge

On May 15, Starbucks announced it will eliminate 300 U.S. corporate positions, record a $400 million restructuring charge and reported that its shares rose following the disclosure.

The reductions affect roles in marketing, human resources, supply chain and some regional support offices. Store-level employees are not included. The company said the restructuring will include a $280 million write-down of long-term assets and about $120 million in cash severance. Starbucks described the changes as an effort to ‘right-size’ corporate functions under CEO Niccol’s turnaround plan.

Starbucks reported stronger quarterly results alongside the personnel changes. In the second quarter of fiscal 2026, revenue rose 9% to $9.53 billion and global same-store sales increased 6.2%. North America same-store sales were up 7.1% and transactions rose 4.4%. Management noted it was the first quarter in more than two years in which both revenue and earnings expanded.

The company raised its full-year same-store sales target to at least 5%, up from a prior goal of 3%, and confirmed plans to open 600 to 650 net new coffeehouses in fiscal 2026, bringing the global footprint to more than 41,000 locations.

A separate transaction that sold a China joint venture generated about $3.1 billion in cash, providing additional liquidity as the company implements operational changes.

Starbucks characterized the corporate reductions as the third such cut since Niccol became CEO and as part of a broader effort to reset margins.

Investors reacted positively to the announcements. Shares climbed and the company’s market value sat near $122 billion, with the stock trading around $106.79 per share. On a trailing basis, the shares trade at roughly 81 times earnings.

Starbucks went public on June 26, 1992, at $17 per share. After six 2-for-1 stock splits, that IPO price adjusts to about $0.26. That performance means a $10,000 stake at the IPO would be worth nearly $4 million today.