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Starbucks is set to incur approximately $400 million in restructuring charges as part of its ongoing ‘Back to Starbucks’ turnaround strategy, with the company also confirming a new round of corporate layoffs and office closures in the US.


According to a Form 8-K filing with the US Securities and Exchange Commission (SEC), Starbucks’ board approved further restructuring actions aimed at “revitalising coffeehouses and enhancing the customer experience” to support long-term growth.


The company said the plan supports its previously announced goal of delivering $2 billion in cost savings initiatives, while continuing the shift of its international business towards a model in which nearly 90% of stores are licensed.


As part of the restructuring, Starbucks will streamline its domestic and international support organisation and reduce the operational complexity of its Starbucks Reserve and Roastery business.


A Starbucks spokesperson has confirmed that the company is laying off around 300 US corporate employees. Reuters also reported that Starbucks is consolidating several regional support office locations, including sites in Atlanta, Burbank, Chicago and Dallas.


Reuters reported that Starbucks is reviewing its international support operations and expects further job cuts outside the US.


Starbucks said the changes are intended to “sharpen focus, prioritise work, reduce complexity and lower costs,” adding that the cuts will not affect its coffeehouse operations, according to Reuters.


The company expects most restructuring actions to be completed by the end of its current fiscal year, with a significant share of the associated charges expected to be recognised during fiscal 2026.


Of the estimated $400 million in restructuring charges, approximately $280 million will comprise non-cash charges related to the impairment of long-lived assets, including lease assets tied primarily to Starbucks Reserve and Roastery locations and non-retail support facilities.


The remaining $120 million will consist mainly of employee separation costs linked to optimisation of the company’s global support organisation.


The latest restructuring measures come as CEO Brian Niccol continues efforts to revive sales growth and improve operational efficiency following several challenging quarters for the business.

Starbucks to incur $400m restructuring hit as it cuts corporate roles and closes offices

Rafaela Sousa

20 May 2026

Starbucks to incur $400m restructuring hit as it cuts corporate roles and closes offices

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