Starbucks Announces Global Restructuring with Job Reductions in London and Hong Kong
Starbucks Corp (NASDAQ:SBUX) has eliminated corporate positions in its London and Hong Kong offices as part of a broader restructuring effort aimed at shifting greater operational responsibility to third‑party licensees. The company cut approximately 120 jobs in London, which serves as the headquarters for its Europe, Middle East and Africa (EMEA) operations. In Hong Kong, about 60 roles were eliminated, representing roughly 20% of the staff in the office that oversees Asia‑Pacific markets outside China and Japan.
The restructuring is intended to reduce costs and remove management layers that coordinate work across regions. Responsibilities previously handled by teams in London and Hong Kong are being transferred either to licensees or to global teams based in Seattle that support multiple regions. This move aligns with Starbucks’ strategy to move away from directly managing many stores outside North America, giving local licensees greater oversight of day‑to‑day operations and business decisions.
In May, Starbucks announced a new round of job cuts in the United States and indicated a review of its international corporate teams. The latest reductions follow those U.S. cuts and come as the retailer continues to pursue its goal of doubling its international store count to about 40,000 locations, with most future expansion expected to occur through licensed partners.
Operational performance updates show that international comparable sales rose 3% in the three months ended March 29, marking a third consecutive quarter of growth. Over the past year, Starbucks introduced new products, updated marketing initiatives, and launched store renovation programs. The company also entered a joint venture for its China operations last year and is evaluating options for its Japan business.
Starbucks shares closed at $100.65 on Thursday, reflecting an approximate 20% gain year‑to‑date.