Starbucks cuts 4 regional offices, $400M charge as it restructures amid fierce competition and growth pressure. Founded 1971, Seattle.
Starbucks has announced further corporate layoffs and office consolidations as part of its ongoing turnaround, with about 300 US support roles being eliminated and international support reviewed. The company expects roughly $400 million in restructuring charges, including $120 million in severance, and notes that store operations are unaffected.
The job market has shown renewed strength in May with robust hiring across multiple sectors, led by healthcare and leisure and hospitality. Unemployment remains near historic lows, even as inflation pressures persist and energy costs rise amid the Iran conflict. Analysts caution that hiring momentum varies by sector and region.
Shinsegae Group says all Starbucks Korea stores will close at 3pm next Monday for a nationwide training after a marketing campaign invoking the Gwangju Uprising triggered public backlash. The move follows the firing of Starbucks Korea’s chief executive and a public apology from Shinsegae Chairman Chung Yong-jin. The company aims to prevent a recurrence and signals seriousness about the incident.