Seattle, WA-based Starbucks plans to lay off 1,100 corporate support employees as part of an effort to streamline operations and improve efficiency.
On Monday, Feb. 24, 2025, Starbucks CEO Brian Niccol announced in a news release that those affected will receive notice on Feb. 25. The decision comes after senior leaders began “evaluating the role, structure, and size” of the coffee chain’s global corporate teams in January.
“I recognize the news is difficult. It is not a decision the leadership team took lightly,” Niccol wrote. “We understand the real effect this has on partners’ lives and their families. We believe it’s a necessary change to position Starbucks for future success — and to ensure we deliver for our green apron partners and the customers they serve.”
The release noted that the layoffs do not affect Starbucks retail store employees or baristas.
While the plan also includes eliminating several hundred additional open and unfilled positions, Niccol said the company will continue to hire for priority positions that fit its new support structure and add the necessary capability and capacity.
Laid off employees will receive support as they transition, including some form of severance package that will likely include pay, healthcare, and career transition services.
Niccol explained that simplifying the corporate structure and creating smaller more agile teams will allow Starbucks to reduce complexity, improve accountability, and drive better integration — putting the company in a better position for greater impact.
“Our new structure is built to focus on priority work and is oriented to support the experience we create in our coffeehouses,” Niccol added. “We’ll simplify what we do and how we work to make it easier to drive the business forward.”
Niccol’s announcement comes as Starbucks faces a lawsuit from Missouri Attorney General Andrew Bailey. On Feb. 11, 2025, Bailey, a Republican, announced a lawsuit alleging that Starbucks’ diversity, equity, and inclusion (DEI) initiatives have created a workforce that is “more female and less white” and has forced Missouri consumers to “pay higher prices and wait longer for goods and services,” AFROTECH™ previously reported.
Bailey said Starbucks enforces “race-and-sex-based hiring practices” and unlawfully segregates employees in violation of anti-discrimination laws. He also accused the coffee chain of violating the Supreme Court’s June 2023 ruling overturning affirmative action.
In a statement denying Bailey’s accusations, Starbucks said, per AFROTECH™, “We disagree with the attorney general, and these allegations are inaccurate. Our programs and benefits are open to everyone and lawful.”
