Starbucks slashes jobs and offices in $400M corporate overhaul

Starbucks has unveiled plans for a major corporate restructuring, including a new $100 million campus in Nashville. The coffee giant will also close four regional offices and cut hundreds of jobs across the US. These changes come as part of a broader strategy to reduce costs and streamline operations by 2028.

The company will open a new corporate hub in Nashville, designed to house around 2,000 employees. While Seattle remains the primary headquarters, this move marks a shift in Starbucks’ geographic approach to corporate operations.

As part of the overhaul, four regional offices—located in Chicago, Atlanta, Dallas, and Burbank—will shut down. Around 300 US-based corporate roles in technology, finance, marketing, and research will be eliminated. Further job reductions are expected internationally as Starbucks reviews its global support teams. The restructuring will cost roughly $400 million, split between $280 million in non-cash charges and $120 million in cash expenses. To incentivise leadership, certain executives have been offered $6 million in stock-based rewards tied to meeting cost-cutting targets. Starbucks aims to save $2 billion in operational expenses by fiscal year 2028. These savings will fund improvements in its cafes and daily operations. Investors responded positively, with shares rising about 1% on Friday after the announcement. Additional details on international workforce changes are expected in the coming months as the company finalises its global review.

The restructuring will reshape Starbucks’ corporate footprint, with a new Nashville campus replacing four regional hubs. Job cuts and cost-saving measures are set to continue, both in the US and abroad. The company’s focus remains on redirecting funds toward store-level enhancements and long-term efficiency.