Starbucks (NASDAQ: SBUX) has eliminated corporate positions at its offices in London and Hong Kong as part of a restructuring effort aimed at transferring most of the responsibility for international operations to third-party licensees, Bloomberg reported on Friday.
According to the publication, the coffee chain cut around 120 roles in London, which serves as the headquarters for the company’s operations in Europe, the Middle East, and Africa.
In addition, approximately 60 jobs were eliminated in Hong Kong, accounting for roughly 20% of the staff at the office overseeing Asia-Pacific markets outside of China and Japan.
The Seattle-based company is restructuring its corporate structure to reduce costs and remove management layers that coordinate activities across different regions.
In May, the retailer announced another round of layoffs in the U.S. and said it was reassessing the composition of its international corporate teams.
The latest job cuts come as the group steps back from directly managing many stores outside of North America.
Instead, local licensees are being given greater control over day-to-day operations and business decisions.
As part of these changes, some duties previously handled by teams in London and Hong Kong are being shifted either to licensees or to global teams in Seattle that work across multiple regions.
The company has previously stated its intention to double the number of international locations, aiming for roughly 40,000 outlets, with most future expansion expected to come through licensee partners.
This restructuring follows broader efforts to improve performance after a prolonged sales slump.
Over the past year, the coffee chain has introduced new products, refreshed marketing initiatives, and launched store renovation programs.
International comparable sales rose by 3% in the three months ending March 29, 2025, marking the third consecutive quarter of growth.
The company is also reviewing certain parts of its international portfolio.
Last year, it set up a joint venture to manage operations in China. Additionally, according to the publication, the chain is exploring options for business development in Japan.
Starbucks shares closed on Thursday at $100.65 and have gained about 20% since the start of the year.
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