RestructuringMay 15, 2026, 09:02 AM
Starbucks Approves Restructuring Plan, $400M Charges
AI Summary
Starbucks' Board of Directors approved further actions under its "Back to Starbucks" strategy, focusing on revitalizing coffeehouses and enhancing customer experience to drive long-term growth. As part of this, the company plans to streamline its domestic and international support organization and non-retail facilities, and reduce operational complexity for Starbucks Reserve and Roastery locations. Starbucks anticipates approximately $400 million in restructuring charges, with $280 million being non-cash due to asset impairment and $120 million in cash for employee separation benefits, with most actions completed by the end of fiscal year 2026.
Key Highlights
- Starbucks Board approved further actions under its "Back to Starbucks" strategy on May 13, 2026.
- The company is pursuing $2 billion in cost savings initiatives.
- International business model has moved to nearly 90% licensed coffeehouses.
- Starbucks expects approximately $400 million in total restructuring charges.
- Approximately $280 million of these charges will be non-cash, primarily from asset impairment.
- The remaining $120 million will be cash charges for employee separation benefits.
- A majority of the plan actions and associated charges are expected by the end of fiscal year 2026.