Starbucks Is Reportedly Cutting 224 Jobs As Its $2B Cost Push Takes Shape — SBUX Stock Slips 1.5%

• Under CEO Brian Niccol, Starbucks is targeting $2 billion in cost savings over two years.
• The company has cut more than 2,300 corporate positions since last year as part of its restructuring.
• Starbucks is also reportedly shrinking its store footprint by closing underperforming locations.

Starbucks Corp. (SBUX) has reportedly eliminated 104 roles as part of a restructuring aimed at boosting growth and said it would lay off workers who declined to relocate to its new Nashville office.

SBUX shares were down 1.5% at the time of writing on Thursday.

SBUX Restructures Teams Amid Nashville Move

The job cuts include roles within the team that oversees store design and construction, Bloomberg reported. The changes are part of a restructuring the Seattle-based company announced in May that included job eliminations in the U.S. and abroad.

Starbucks will also separate about 120 workers who declined to move from Seattle to a new office in Nashville by November 1, according to a filing with Washington state regulators, the report added.

Earlier this year, the company told some staff in its supply chain and technology teams that they would need to relocate or lose their positions. Starbucks expects the Nashville office to eventually house about 2,000 workers.

Starbucks' $2B Cost-Cutting Plan

Under Chief Executive Officer Brian Niccol, Starbucks is pursuing a two-year plan to cut $2 billion in costs. The effort involves reshaping the company’s corporate structure, with more than 2,300 corporate positions eliminated since 2025 as part of the broader streamlining drive.

Beyond its corporate workforce, Starbucks is also taking steps to reduce its operating footprint by shutting underperforming stores. 

Earlier this year, the company sold a 60% stake in its China retail operations to funds managed by Boyu Capital while retaining 40% ownership. The shift to a licensed model cut China-related Q3 revenue to $53 million from historical levels near $800 million, while sharply lifting margins and delivering a $536 million pre-tax gain. Management still calls China a top long-term growth market and aims, with Boyu, to reach as many as 20,000 stores.

Starbucks’ Sales Growth Rebounds

Starbucks has recorded four straight quarters of improved sales growth at established stores, reversing a period of declines as customers pulled back amid slow service and underwhelming products.

To win customers back, the company has increased staffing at its stores, retrained employees and introduced technology designed to better prioritize orders. Starbucks is also refurbishing stores and phasing out slower-selling products in favor of newer offerings.

SBUX Stock: Stocktwits Retail Sentiment

On Stocktwits, retail sentiment for SBUX remained ‘bearish,’ unchanged in the past 24 hours, while message volume was ‘normal’ during the same period.

SBUX stock has gained around 21% this year.

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