Starbucks Lays Off 1,100 Corporate Employees in Global Restructuring, Impact on Canada Unclear

​Starbucks has announced plans to lay off 1,100 corporate employees globally as part of a strategic effort to streamline operations and enhance efficiency. This decision, communicated by CEO Brian Niccol, aims to simplify the company's structure by eliminating redundancies and creating more agile teams.

The layoffs will affect approximately 6.9% of Starbucks' non-retail workforce, which includes corporate support roles but excludes in-store baristas and staff involved in roasting, manufacturing, warehousing, and distribution. Niccol emphasized that these changes are intended to reduce complexity, increase accountability, and better integrate operations.

In Canada, the specific impact of these layoffs remains uncertain. While Starbucks employs over 10,300 individuals in Canada, the company has not disclosed how many corporate positions will be affected domestically. Notably, Niccol's letter highlighted new leadership expectations for North American executive teams, stating that vice president-level leaders are now required to be present in the Seattle or Toronto offices at least three days a week.

For Canadian employees impacted by these layoffs, understanding their legal rights and potential severance entitlements is crucial. Severance pay in Canada is influenced by factors such as length of service, age, position held, and the availability of similar employment opportunities. Affected employees are advised to consult with employment law experts to ensure they receive fair compensation during this transition period. ​

This development at Starbucks reflects a broader trend in the corporate sector, where companies are restructuring to adapt to changing market conditions and consumer preferences. As organizations seek to optimize operations, employees are encouraged to stay informed about their rights and available resources to navigate these changes effectively.​

Have you been laid off by Starbucks Canada? Contact our employment lawyers today. Our legal team offers a free consultation and works on a contingency basis—there are no fees unless you win your case.

The Associated Press’s original article, “Starbucks lays off 1,100 corporate employees as coffee chain streamlines” was published in BNN Bloomberg News on February 24, 2025. Read the Full BNN Bloomberg News story.