Summary: Starbucks is preparing for another round of layoffs in 2026 as part of a broader restructuring strategy led by CEO Brian Niccol. The move aims to streamline operations and improve long-term efficiency following a challenging financial year.
Brewing Change: Layoffs on the Horizon
Starbucks is once again in the spotlight as it faces renewed restructuring under CEO Brian Niccol, who took the helm in September 2024. After already eliminating over 2,000 corporate and non-retail roles in 2025—including 900 job cuts announced in October—Niccol has signaled that more layoffs may be coming in 2026.
In the company’s October 29, 2025 earnings call, Niccol emphasized the need to “carefully manage costs and stay focused on key areas that drive long-term growth.” This statement has fueled speculation that additional workforce reductions are imminent as Starbucks seeks to realign its business priorities.
Store Closures and Operational Shifts
As part of its $1 billion restructuring effort, Starbucks has already announced plans to close 1% of its North American stores and renovate over 1,000 locations by the end of the fiscal year. These changes are designed to optimize store performance and enhance customer experience, especially as mobile orders now account for more than 30% of transactions.
The company has not disclosed which specific locations will be affected, but it confirmed that notifications will be sent to impacted stores in the coming months.
What’s Driving the Restructuring?
Several factors are contributing to Starbucks’ strategic overhaul:
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Rising inflation and missed earnings expectations in 2025
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Operational inefficiencies due to increased mobile ordering
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Customer dissatisfaction with high prices and long wait times
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Global same-store sales decline of 2% in 2024
Niccol’s leadership style, shaped by his tenure at Taco Bell, is focused on agility, cost control, and brand revitalization. His restructuring plan includes not only layoffs and store closures but also menu simplification and digital innovation.
What’s Next for Starbucks?
While the exact number of layoffs in 2026 remains uncertain, industry analysts expect the cuts to target corporate roles and underperforming regions. Starbucks has promised to support affected employees with severance packages and career transition resources.
The company’s next earnings report in early 2026 may provide more clarity on the scope and impact of these changes. For now, Starbucks employees and investors alike are bracing for another wave of transformation.
