Starbucks layoffs trim London, Hong Kong hubs by 180

Starbucks layoffs reduced corporate headcount in London and Hong Kong as the company moves to give third-party partners more control over stores outside North America.

The cuts affect two regional hubs that oversee large parts of Starbucks’ international business, according to people familiar with the changes. Starbucks declined to provide additional comment beyond a restructuring update it issued in May.

Regional hubs see reductions in EMEA and Asia-Pacific teams

In Hong Kong, Starbucks eliminated about 20% of the corporate team, roughly 60 roles, people familiar with the matter said. That office coordinates the company’s Asia-Pacific business excluding China and Japan.

In London, Starbucks removed about 120 positions tied to its Europe, Middle East and Africa operations. The London hub serves as the headquarters for that region’s corporate oversight and support functions.

The changes come as Starbucks increases reliance on licensed operators in many markets outside North America. Under licensing arrangements, local partners typically run day-to-day store operations while Starbucks provides brand standards, product frameworks, and broader strategic direction.

Restructuring aims to cut costs and remove “duplicative” layers

Starbucks has been reshaping corporate teams to reduce expenses and simplify how work is managed across the company. Leadership has described the effort as targeting overlapping management layers and roles focused primarily on coordination rather than execution.

The May announcement referenced a new round of job reductions in the United States and said the company was also reviewing international corporate teams. The London and Hong Kong reductions align with that review, based on the people familiar with the actions.

While Starbucks did not detail the precise functions eliminated in each hub, the stated objective of removing duplicative work suggests fewer regional oversight roles as licensees take on greater responsibility. For multinational consumer brands, that shift often reduces the need for large centralized teams supporting operations that partners already manage locally.

International governance shift follows improved sales momentum

The latest reductions arrive after Starbucks reported a rebound in sales following an extended period of weaker performance. The company has credited the improvement to new product launches, refreshed marketing, and a store remodeling initiative.

Those efforts have been part of a broader turnaround approach that emphasizes menu and brand updates alongside operational changes in stores. Remodeling programs can also require significant investment, increasing pressure to keep corporate overhead in check—particularly in functions that do not directly affect customer experience.

Starbucks’ international footprint is a key growth driver, but its operating model varies by market. In many countries outside North America, licensed partners play a central role in staffing, store operations, and market-specific decisions, which can reduce the need for large internal teams coordinating across regions.

The immediate implication is a leaner corporate structure in two key regional offices, with more autonomy pushed toward local operators. Next steps to watch include whether Starbucks expands similar changes to other international teams and how the company measures performance and brand consistency as licensees gain latitude.