Starbucks has announced 252 layoffs tied to its Seattle headquarters as part of a broader restructuring. The layoffs, affecting corporate roles at its SODO support center and remote employees reporting to Seattle managers, are set to begin in mid-July and conclude by early February.
Relocation to Nashville
Some corporate roles in Seattle will relocate to Starbucks' new Nashville hub, which is expected to house 2,000 jobs. However, the company clarified that the layoffs are separate from this transition.
Financial Impact
Starbucks anticipates $400 million in restructuring charges, including $120 million in employee separation benefits and $280 million in non-cash charges for asset impairment. Despite the cuts, the company reported a strong quarter with $9.5 billion in revenue, up 8% year-over-year.
Additional Layoffs
In addition to these 252 cuts, Starbucks previously laid off 61 employees in technical fields on May 8. The company plans to review its international support organization, potentially leading to more layoffs.
Remote Work Implications
The affected roles include remote employees from across the country who are administratively tied to Seattle. This highlights the vulnerability of remote positions during corporate restructuring, even as Starbucks maintains offices in New York and Nashville.
Starbucks CEO Brian Niccol emphasized the need to ensure the company's momentum continues, aiming to return to a durable and profitable state.
Comments
Join Our Community
Sign up to share your thoughts, engage with others, and become part of our growing community.
No comments yet
Be the first to share your thoughts and start the conversation!