s·CFO DailyStarbucks continues to cut corporate jobs in turnaround bid: ‘Many are cost centers, not revenue ducers,’ says expertBy Sheryl EstradaBy Sheryl EstradaSenior Writer and author of CFO DailySheryl EstradaSenior Writer and author of CFO DailySheryl Estrada is a senior writer at Fortune, where she covers the corporate finance industry, Wall Street, and corporate leadership.
She also CFO Daily.SEE FULL BIO Getty ImagesGood morning.
As Starbucks tries to evoke nostalgia for its brand, the company is undergoing a major restructuring, including corporate layoffs and costly changes as part of its turnaround plan.
This move highlights the importance for companies to stay focused on what customers love, or risk losing ground to competitors.
The Starbucks board apved a $1 billion restructuring plan this week that will close underperforming coffeehouses and reshape its corporate support organization under the “Back to Starbucks” strategy, according to an SEC filing.
90% of these expenses will come from its North American , and most costs will hit in fiscal 2025. The plan includes closing at least 100 North American cafes and remodeling over 1,000 locations.
Starbucks expects its company-operated store count in North America to decline by 1%, according to a letter from CEO Brian Niccol to employees on Sept. 25. The company had 18,734 stores as of June 29.
Starbucks will eliminate 900 non-retail partner roles and many open positions. Affected employees will be notified on Sept. 26 and offered severance and support packages, including ext benefits.
The company’s goal is to put resources “closest to the customer so we can create great coffeehouses, offer world-class customer service, and grow the ,” Niccol wrote.
Starbucks is pivoting from mobile-only “pickup” stores, which it thought would appeal to customers, especially younger generations.
There’s now an effort to recreate a “third place”—a location between and work to spend time, which once fueled Starbucks’ ity. ‘A leaner corporate structure’ The Fortune 500 company (No.
126) has experienced six consecutive quarters of declining same-store sales, which is a measure of performance at individual locations.
Starbucks’ market among Gen Z has slipped from 67% to 61% over the past two years, marking four consecutive quarters of declines, according to Consumer Edge, Fortune reported.Morningstar equity analyst Dan Su told me that Starbucks is prioritizing investments in stores to revive growth and strengthen its long-term competitive position, funding these changes with cuts to corporate roles.
“A leaner corporate structure may make decision-making more efficient during the turnaround,” he said.
Robert Kelley, fessor of management at Carnegie Mellon’s Tepper School of , said successful turnarounds must make strategic and financial sense to customers, employees, holders, and other stakeholders.
“The CEO and CFO need to convince all these groups that their plan will work,” he added, stressing transparency. This is Starbucks’ second round of corporate layoffs in less than a year.
Kelley explained that non-retail layoffs are common and the retail side is the “critical path,” referring to his 2021 book, “The Critical Path Manifesto.” The retail side is where you serve your customers, therefore leading to revenues and cash flow, he said.
“Many corporate jobs are cost centers, not revenue ducers.” Brian Niccol became CEO in September 2024 after leading Chipotle.
Cathy Smith joined as CFO in March, bringing turnaround experience from Walmart, Nordstrom, and Target.
Smith helped Target and Nordstrom recapture what customers loved their brands during critical periods. “All brands drift over time, and I have pattern recognition,” Smith told Fortune in April.
“I’ve seen this with a number of brands, and the great ones recapture what made them great,” she said. Su noted that Smith has said she’d use zero-based budgeting to evaluate costs and boost margins.
“I expect Smith to focus on labor ductivity in stores, and efficiencies in corporate spending.” Reviving Starbucks’ coffee culture may depend on it. Have a good weekend. See you on Monday.
Sheryl Estradasheryl.estrada@fortune.comLeaderboardSome notable moves this week:Simon Edwards was appointed CFO of Groq, an AI company that develops hardware and software, including the Language cessing Unit.
Edwards most recently served as CFO at Conga, overseeing finance, corporate development, and legal.
He was previously CFO of ServiceMax, where he helped lead the company to fitability and expansion, culminating in its 2023 acquisition by PTC.
Earlier, he held senior finance roles at GE, including CFO of GE Digital.James Shen was appointed interim CFO at GitLab, effective Sept. 20, according to an SEC filing.
Brian Robins stepped down from his roles as CFO and chief accounting officer at GitLab to become finance chief at Snowflake. Shen has served as VP of finance at GitLab.
Christy Schwartz was appointed interim CFO of Opendoor nologies Inc. (Nasdaq: OPEN), effective as of Sept. 30, replacing Selim Freiha, the company’s CFO, according to an SEC filing.
Schwartz served as the company’s interim CFO from December 2022 to November 2024, and its chief accounting officer from March 2021 to May 2025.
Before that, she served as Opendoor’s VP, corporate controller from August 2016 to March 2021.
Bonnie Boyer was appointed CFO of Guident Corp., an autonomous vehicle teleoperation, effective immediately. Boyer brings over 15 years of financial leadership experience.
Most recently, she served as chief accounting officer at Sagent M&C, a SaaS vider in the mortgage nology sector. Steve Kinsey, CFO of Flowers Foods, Inc.
(NYSE: FLO), plans to retire at the end of 2025 after 36 years of service, including the last 18 as chief financial officer. The company has initiated a for Kinsey's successor. ing his retirement, Mr.
Kinsey is expected to continue to serve in an advisory role for a period of time. Flowers operates bakeries across the country.
Among the company's top brands are Nature's Own, Dave's Killer Bread, Wonder, Canyon Bakehouse, and Tastykake. Cornelis (Carlo) Broos was moted to CFO of Cibus, Inc.
(Nasdaq: CBUS), a bionology company, according to an SEC filing. Broos has served as interim CFO of Cibus since October 2024 and previously held the position of SVP of finance. He joined Cibus in 2011.
Before joining the company, Broos held finance leadership positions at Syngenta Europe Africa Middle East, Syngenta Netherlands and Belgium, Advanta, and Deloitte Netherlands.
David Croxville was appointed CFO of C1, a nology solutions and services company. Croxville brings more than 30 years of experience.
Most recently, he served as EVP and CFO of NTT DATA Services in the Americas, where he led finance, curement, real estate, and IT across 44 countries, and more than 10 acquisitions, including Dell Services.Brett Summerer was appointed CFO of Accel Entertainment, Inc.
(NYSE: ACEL), a gaming operator, effective Sept. 22. Summerer succeeds Mark Phelan, who has served as acting CFO in addition to his role as president, U.S. Gaming.
His prior leadership roles at Kraft Heinz, Corning, and General Motors included managing global P&Ls and leading strategic initiatives. Most recently, Summerer served as CFO of Verano Holdings.
Josh Greear was appointed CFO of Authority Brands, a multi-brand franchisor in the services sector. Greear has more than 25 years of experience in franchising, financial leadership, and strategy.
He most recently served as CFO at Primrose Schools, a national early education and care franchise.
Before that, Greear held senior leadership roles, including VP of strategy and development at Cracker Barrel.
Big DealIndeed's " Report 2025" finds that generative AI (GenAI) is transforming job skills rather than replacing jobs entirely.
The report suggests GenAI will primarily augment human work, allowing focus on higher-level tasks, with nology skills being most susceptible to transformation while physical and human-centric roles remain less affected.
Going deeperHere are four Fortune weekend reads:"Kraken quietly closes $500M round as its unusual CEO pushes toward the IPO finish line" by Jeff John Roberts"The U.S.
will now actually control TikTok’s algorithm, JD Vance says" by Eva Roytburg"Why Amazon actually got off easy despite ‘historic’ $2.5 billion Prime deceptive practices settlement" by Jason Del Rey "Do you know your attachment style?
It could be the reason you’re not getting moted at work" by Orianna Rosa Royle Overheard“I would make something with AI that that team is bably not using or doing.
I would send it to everybody on that team and I’d say, ‘look, I built this for you, and I doubt you have this, and if you hire me, I will build more of it.’” —MasterClass CEO David Rogier told Fortune in an interview.
Rogier explained that there are ways for young people to stand out in an AI-driven job market.
His advice includes picking an industry that sparks interest, immersing yourself in its challenges, and using AI to build something the team doesn’t already have.This is the web version of CFO Daily, a on the trends and individuals shaping corporate finance.
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