Starbucks says it's laying off 300 US employees, hints at more job cuts to come

What happened: Starbucks (SBUX) announced connected Friday that it would destruct 300 US firm roles and is “reviewing” its planetary team.

What’s down the move: A Starbucks spokesperson told Yahoo Finance that the layoffs are portion of the team's effort to “further sharpen focus, prioritize work, trim complexity, and little costs.” The institution besides plans to consolidate immoderate of its US offices. It’s each portion of CEO Brian Niccol’s turnaround plan.

What other you request to know: Shares of the java elephantine are up 26% twelvemonth to day aft Starbucks posted planetary same-store income maturation of 6.2% successful its latest quarter, beating Wall Street’s forecasts of 3.7% growth, according to Bloomberg statement data.

Because of Friday’s layoff announcement, Starbucks expects to instrumentality a $400 cardinal restructuring charge, comprising $280 cardinal from bureau closures and $120 cardinal for severance packages.

The layoffs relationship for astir 3% of its US firm workforce but a tiny percent of its wide workers. According to Starbucks’ yearly report, the institution employed 223,000 workers, including 214,000 employees astatine company-operated stores and 9,000 firm roles.

Outside the US, Starbucks employs 158,000 workers, including 153,000 astatine stores and 5,000 firm employees.