Starbucks has cut 61 more corporate employees at its Seattle headquarters, targeting its technology department — including cybersecurity analysts, application developers, and systems administrators. Separations begin June 20 and conclude by August 28, per a WARN filing. The cuts follow earlier rounds of layoffs, including 974 employees in October and 69 store workers in March. Meanwhile, Starbucks plans to place over 2,000 employees in a new Nashville office over five years. Despite ongoing workforce reductions, the company reported strong Q2 revenue of $9.5 billion, a 9% year-over-year increase, with CEO Brian Niccol declaring a turnaround milestone.
In-Depth:
Starbucks has laid off 61 more corporate workers at its Seattle headquarters.
The layoffs were in the company’s technology department and included positions such as cybersecurity analysts, application developers, and systems administrators, according to a worker adjustment and retraining notification (WARN) filing.
The first separations will be on June 20, with all expected to be completed by August 28, the filing stated.
The layoffs come as the coffee giant announced plans to hire or shift 2,000 workers to its new Nashville office over the next five years. The 2,000 employees would be more than half of Starbucks’ employees in the Seattle area.
“The Nashville office will be a complement to our global and North America headquarters in Seattle, where we will maintain a large presence,” Sara Kelly, Starbucks’ chief partner officer, wrote in a news release last month.
Despite the seismic shift, Starbucks confirmed that Seattle will remain its North American and global headquarters.
Starbucks’ cuts extfinish beyond corporate
In March, 69 workers across five Seattle stores were laid off. The layoffs were from stores previously announced to close and affected baristas and shift supervisors.
“These choices are never simple — especially here at home — but they’re an important part of focutilizing on what we do best and delivering on our Back to Starbucks strategy,” Starbucks spokesperson Jaci Anderson notified The Seattle Times in March.
Four of the five closed stores were a part of “Starbucks Workers United,” a worker-led unionizing effort fighting for higher pay, more hours for employees, and better protections for the staff. But a company spokesperson notified The Seattle Times the stores’ union status was not a factor in their shutdown.
In October, it was announced that Starbucks was laying off 974 employees in Seattle and Kent. The layoffs included both retail and non-retail employees, a Starbucks spokesperson notified MyNorthwest.
Starbucks sees growth despite layoffs
Despite a series of layoffs, Starbucks posted strong Q2 growth this year. Revenue reached $9.5 billion, a 9% increase from the same quarter last year, according to Starbucks’ quarterly earnings report.
“This quarter marked a milestone for Starbucks — and the turn in our turnaround,” Starbucks CEO Brian Niccol declared in a video on the company’s website. “For the first time in more than two years, we delivered growth on both the top line and the bottom line.”
The Seattle-based coffee chain drew more customers for the second straight quarter and raised its outsee for the rest of the year. Niccol noted the company now expects sales to rise at least 5%, up from its earlier projection.
Contributing: Julia Dallas and Frank Sumrall, MyNorthwest; Aaron Granillo, KIRO Newsradio
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