There’s a chill in the air at Starbucks, and it’s not just the pumpkin spice season making its arrival. After a challenging year marked by rising inflation and missed earnings’ expectations, the legacy chain is trimming the fluff once again. Under new CEO Brian Niccol, who took the helm in September 2024, a fresh round of Starbucks layoffs in 2026 may make the news soon.
In the latest October 29, 2025, earnings call, Niccol’s tone was direct. “We’ll continue to carefully manage costs and stay focused on key areas that drive long-term growth.”
This focus has already translated into 900 corporate job cuts announced in late October. It marks the second significant layoff at Starbucks after 1,100 non-retail job cuts earlier in 2025. So far, over 2,000 roles have been eliminated since Niccol’s arrival.
Starbucks faces renewed restructuring as CEO Brian Niccol looks into more layoffs in 2026 to drive efficiency. (Image: Pexels)
What’s the strategy behind the Starbucks layoffs?
Brian Niccol’s restructuring strategy mirrors his previous playbook at Chipotle. It’s a pivot from bloated cost structures to nimble, revenue-generating operations. Starbucks’ internal memo in September 2025 emphasized the need to shift away from “cost centers” and channel resources toward what he calls “revenue drivers”. This could mean innovations tailored for Gen Z consumers, refreshed menu offerings, and a more efficient store network.
What’s clear so far is that Starbucks is in transformation mode. With U.S. comparable sales still down 7% year-over-year, the company is racing to stabilize operations through cost discipline and store remodels. The 2026 fiscal target, i.e., a rebound to +5% comp sales growth, now looms large. If that fails, further Starbucks job cuts may be inevitable.
Starbucks layoffs in 2026 and what’s next
While Niccol’s leadership has injected new energy into the brand’s long-term vision, analysts say the company’s restructuring wave is far from over. If the coffee chain doesn’t meet its 2026 recovery goals, broader store-level or supply chain layoffs at Starbucks could follow, extending beyond the 900 corporate roles already cut this year.
Insiders hint at additional streamlining across support functions, supply logistics, and tech operations. These are divisions often labeled as “cost centers.” For many employees, the question is no longer if but when the next round of Starbucks layoffs in 2026 will hit.
Where’s the growth and morale?
Niccol’s “significant action” might please shareholders in the short term, but the real challenge lies in preserving the Starbucks culture. This is the very same company that was once celebrated for its “partner-first” ethos.
Starbucks has built its identity around the promise of community, inclusion, and opportunity. However, as job cuts at Starbucks continue to mount, morale within corporate ranks is being tested.
Employees describe a mix of admiration for Niccol’s clarity and anxiety over his efficiency drive. “It feels like a new Starbucks, leaner, yes, but colder too,” one mid-level manager reportedly shared.
Does efficiency mean job cuts?
Across industries, 2026 is shaping up to be another year of global corporate resets, with tech, retail, and service sectors all facing waves of job cuts in 2026. Inflation, higher wage costs, and shifting consumer habits are forcing companies to rethink how they scale and sustain growth.
Yet Starbucks’ challenge is unique. Its product is emotion as much as espresso. The brand’s future depends not only on streamlined processes but also on restoring the warmth that made it an icon of modern coffee culture.
Niccol’s “back-to-basics” plan may well succeed in realigning operations and profitability. But for thousands of employees, 2026 could be the most defining and uncertain chapter in Starbucks’ recent history.
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