Starbucks cutting corporate roles by early March 2025 amid declining sales

What’s happening at Starbucks?

Starbucks has announced plans to restructure its corporate workforce, which will result in an unspecified number of layoffs starting early March. The company clarified that the layoffs will not affect baristas or other employees working in its stores. The news was first reported by the Associated Press.

Details of the announcement

• In a letter to employees, CEO Brian Niccol emphasized the need to simplify Starbucks’ corporate structure by eliminating redundancies and ensuring clear accountability in roles.
• Niccol highlighted that the company’s size and structure have led to inefficiencies, stating, “Our size and structure can slow us down, with too many layers, managers of small teams and roles focused primarily on coordinating work.”
• “I do not take these decisions lightly, and I appreciate that this will create uncertainty and concern,” he wrote.

Timeline and scope

• Specific decisions regarding layoffs will be communicated by early March.
• Starbucks employs approximately 16,000 corporate staff globally, with 10,000 in the U.S. and 6,000 in other countries.
• This move comes as Starbucks addresses declining sales, particularly in the U.S. and China. On Monday, the coffee giant announced it would reverse its open-door policy, now requiring a purchase for customers to sit or use the bathroom.

Market challenges and leadership changes

• Starbucks has faced slowing U.S. sales and rising competition from lower-priced rivals in China, its second-largest market.
• In September, Brian Niccol was appointed CEO, bringing experience from his leadership roles at Taco Bell and Chipotle. His appointment signals a renewed focus on marketing and operational efficiency to drive growth.

Next steps for Starbucks employees

If you’ve been affected by the layoffs at Starbucks, understanding your legal rights is crucial.

Non-unionized employees in Canada’s technology sector are entitled to severance pay based on a variety of factors, including their role, tenure, age, and ability to find similar work.

Lost Your Job? Contact Us

If you’re affected by the latest round of layoffs at Starbucks, the experienced team at Samfiru Tumarkin LLP can help.

Our lawyers in Ontario, Alberta, and British Columbia – including our employment lawyers for Kelowna – have helped tens of thousands of non-unionized individuals resolve their workplace issues.

Call us today at 1-855-821-5900 or request a consultation online.

Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is NOT specific to any one company and should NOT be read as suggesting any improper conduct on the part of any specific employer, or a relationship between Samfiru Tumarkin LLP and a specific employer.