Starbucks announces details on layoffs of 200-plus Seattle headquarters employees
Starbucks layoffs hit 224 Seattle headquarters employees
Starbucks plans to lay off more than 200 corporate employees at its Seattle headquarters, including store designers and IT workers who refuse to relocate to Nashville.
SEATTLE - Starbucks has filed a notice with the state announcing details on a layoff of more than 200 corporate employees at its headquarters in SoDo.
According to economics experts, the workforce reduction stems from two distinct groups within the company.
Who's impacted by the layoffs
What we know:
Joseph Phillips, Professor of Economics at Seattle University, says the first group includes around 120 information technology workers who chose not to relocate to Starbucks' new corporate office in Nashville.
He says the second group is made up of employees who worked on Starbucks' store design.
While Starbucks had previously announced broader plans for corporate layoffs earlier this year, details regarding the timing and specific roles affected are now being announced.
"We knew that Starbucks was going to move their IT to Nashville and those employees would be offered the opportunity to go... so we are finding out that 120 employees don't want to go to Nashville," said Joseph Phillips, a professor of economics at Seattle University.
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Local businesses feel the economic ripple
What they're saying:
The corporate cuts come amid a broader wave of tech job losses nationwide, which have hit tech-centric hubs like Seattle especially hard.
"We’ve seen quite a few Starbucks jobs leaving Seattle and these are typically high-paying, high-quality jobs," said Nick Huntington-Klein, Associate Professor of Economics at Seattle University.
Neighborhood businesses near the Starbucks SoDo campus rely heavily on foot traffic.
At Apex Art Lab, a local business that sells handmade and local art, team members say neighboring corporate workers are key clients.
"Foot traffic is really important here on 1st," said Joanna Coleman, an art consultant at Apex Art Lab. Coleman said Starbucks employees make up a portion of their walk-in business.
Employees at nearby businesses say whatever happens in this business climate, it's important to come out to support local shops and restaurants.
"Apex Art Lab is here to stay for sure, so come support us," said Coleman.
Starbucks reaffirms Seattle commitment
Dig deeper:
When Starbucks initially announced its expansion into Nashville, the company stated the new facility would work closely with its Seattle headquarters and maintained that it remains committed to its home base.
Experts note that while some positions are shifting out of state, the latest round of layoff announcements does not indicate that Starbucks currently plans to move its entire corporate footprint or headquarters out of Seattle.
We reached out for new comment regarding the latest state filings. We also asked if there were any more layoff announcements planned in the future and are waiting to hear back.
Starbucks to cut 224 jobs in another round of layoffs
Starbucks, for the second time this year, announced that it will be laying off more than 200 employees. The job cuts come ahead of the company's office opening in Nashville next year.
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The Source: Information in this story came from a WARN notice and a press release from Starbucks, and original FOX 13 Seattle reporting and interviews.