After Starbucks said last month that it planned to lay off hundreds of nonretail workers as part of a $1 billion restructuring plan, a new state filing shows what these job cuts mean for employees in Washington.
The Seattle-based coffee giant is laying off 974 workers in Seattle and Kent, according to the filing with Washington state’s Employment Security Department on Thursday.
These layoffs are “primarily corporate,” a Starbucks spokesperson said Friday, though they affect both retail and nonretail workers.
Among the laid off employees are 194 district managers, 70 retail baristas, 46 retail operations leads and 38 project specialists, according to the state filing, which shows that some of those empty positions will be contracted out.
Workers at four Starbucks locations — the Seattle headquarters, the Sodo Reserve Store, the Seattle Roastery and the Kent Roasting Plant — are swept up in these layoffs.
The layoffs are tied to CEO Brian Niccol’s announcement on Sept. 25, the spokesperson said. At the time, the company said it would lay off 900 nonretail employees and shutter an unspecified number of stores. It didn’t give an estimate of how many retail workers would be affected.
Starbucks Workers United, the union that represents nearly 12,000 store baristas nationwide, said Friday that it doesn’t currently believe the most recent layoffs affect union-represented retail workers.
However, the state filing indicates that unionized employees are part of the cull.
Thursday’s layoff details come on the heels of a separate wave of job cuts that hit 369 Starbucks retail workers who lost their positions due to Washington store closures.
The layoff date for both groups is Dec. 5.
But these are not the only layoffs this year. Starbucks cut 1,100 other corporate employees in February.
According to LinkedIn, more than 3,000 Starbucks employees work in Seattle. A Starbucks spokesperson declined to provide a total count of Washington-based workers.
The consequences of the company’s latest actions are felt beyond state lines.
A Starbucks tech worker in Texas said the company informed him of his layoff last month, though he will continue to work for Starbucks until late February. He asked to remain anonymous to protect his job until then.
He said in a Friday phone interview that the corporate layoffs are coming in waves, and his boss was among the first to go.
Within the company, “it’s really bad,” he said. “You had a lot of long-term partners, people who were anticipating retiring with the company,” who were laid off. Starbucks calls its employees partners.
“A lot of people are really demoralized,” he said.
For his part, the tech worker recently graduated with his master’s degree, hoping to move up in the company.
Now, that dream is dashed.
Sweeping store closures nationwide are part of Niccol’s $1 billion restructuring plan.
As the company’s hometown, Seattle has been especially roiled by recent changes, including the closures of the Reserve Roastery on Capitol Hill and the Reserve store in Sodo.
A total of 31 stores shuttered throughout the state, according to a state filing.
Starbucks didn’t provide a full list of store closures nationwide, but Starbucks Workers United said 59 unionized stores closed nationwide.
Niccol attributed the store closures to myriad reasons, including financial performance and lease expirations, in his announcement.
“We’re working hard to offer transfers to nearby locations where possible and will move quickly to help partners understand what opportunities might be available to them,” Niccol said. “For those we can’t immediately place, we’re focused on partner care, including comprehensive severance packages.”
A Starbucks spokesperson said current pay and benefits for affected workers extend through Dec. 5, and severance and COBRA health coverage extends beyond that date, though the length is dependent on role, tenure and other factors.
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Megan Ulu-Lani Boyanton: 206-652-6373 or mboyanton@seattletimes.com. Megan Ulu-Lani Boyanton is a business reporter at The Seattle Times.