Starbucks has announced significant layoffs affecting nearly 1,000 workers in Washington state as part of its $1 billion restructuring plan.
According to a filing with Washington’s Employment Security Department, the coffee giant is eliminating 974 jobs in Seattle and Kent, primarily targeting corporate roles.
The layoffs include 194 district managers, 70 retail baristas, 46 retail operations leads, and 38 project specialists, with some positions earmarked to be contracted out, the filing revealed.
These job cuts impact employees at four key Starbucks locations: the Seattle headquarters, the Sodo Reserve Store, the Seattle Roastery, and the Kent Roasting Plant.
This decision follows CEO Brian Niccol’s announcement on September 25, which initially mentioned plans to cut 900 nonretail positions, but did not specify how many retail workers would be affected.
Starbucks Workers United, the union representing almost 12,000 baristas nationwide, stated on Friday that it is not currently aware of any union-represented retail workers facing layoffs.
However, the state filing indicates that some unionized employees are among those being laid off.
These layoffs come shortly after another phase in which 369 retail workers lost their positions due to closures of Starbucks stores in Washington.
The effective date for both layoff groups is set for December 5.
This is not the first round of job cuts this year, as Starbucks previously laid off 1,100 corporate employees in February.
With over 3,000 employees in Seattle alone, the company’s spokesperson declined to provide an exact headcount of its workers in Washington state.
The mood within the company is reported to be quite somber, as layoffs create uncertainty and anxiety among employees.
An anonymous Starbucks tech worker from Texas shared concerns about the ongoing layoffs impacting long-term employees who had hoped to retire with the company.
Many partners, as Starbucks refers to its employees, feel demoralized and unsettled by the company’s recent decisions.
This tech worker, who recently completed a master’s degree with aspirations of advancing within Starbucks, now faces an uncertain future.
Starbucks is also engaging in sweeping store closures across the country as part of Niccol’s restructuring initiative.
Seattle, the company’s headquarters, has experienced notable disruptions, including the shutdown of the Reserve Roastery on Capitol Hill and the Reserve store in Sodo.
In total, 31 stores have closed across the state according to the state filing.
While Starbucks has not released a complete list of store closures nationwide, it has been reported by Starbucks Workers United that 59 unionized stores have shut down across the country.
In his earlier announcement, Niccol cited various factors for the closures, including financial performance and lease expirations.
To mitigate the impact on employees, the company is exploring transfer options to nearby locations and is emphasizing support for partners affected by the layoffs.
“We’re working hard to offer transfers to nearby locations where possible and will move quickly to help partners understand what opportunities might be available to them,” Niccol stated.
For those unable to find immediate placement, Starbucks asserts its commitment to partner care by offering comprehensive severance packages.
As it stands, the current pay and benefits for affected workers will remain active until December 5, with the provision of severance and COBRA health coverage extending beyond that date based on role, tenure, and other considerations.
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