Starbucks is implementing layoffs affecting corporate tech employees at its Seattle Support Center. The company announced these cuts in a notice to Washington's Employment Security Department.
What happened
Starbucks announced plans to lay off 61 employees at its Starbucks Support Center on Utah Avenue South in Seattle. The affected roles are primarily in cybersecurity, engineering, and technology product areas, including project managers, scrum masters, systems administrators, and technical product managers. These employees are not baristas and are not represented by a union. The layoffs are scheduled to begin on June 20 and will continue until August 28, 2026.
How many employees affected
A total of 61 corporate employees are affected by this round of layoffs.
Why layoffs happened
The layoffs are a result of a reorganization within Starbucks' technology department. EVP, Chief Partner Officer Sara Kelly stated that the reorganization is not due to the relocation or contracting out of company operations or positions. CEO Brian Niccol's "Back to Starbucks" plan, which focuses on the coffeehouse experience, was cited as an impetus for strategic changes, following better-than-expected profits and revenues in the most recent quarterly earnings call.
Company background
Starbucks is a Seattle-based coffee company with its global headquarters located in Seattle's Sodo neighborhood. The company recently established a new corporate operations office in Tennessee in March, which is expected to house up to 2,000 employees over the next five years.
Industry impact
The provided sources do not contain sufficient information to assess the broader industry impact of these specific layoffs beyond Starbucks itself.
What's next
The layoffs are set to commence on June 20, with all affected employees separated from the company by August 28, 2026. Starbucks has indicated that the impacted positions will not be relocated or contracted out.