Starbucks Corporation (NASDAQ: SBUX) announced its board of directors approved a restructuring plan on May 13, 2026, as part of its "Back to Starbucks" strategy aimed at revitalizing coffeehouses and enhancing customer experience.

The restructuring plan involves approximately $400 million in charges, with $280 million expected to be non-cash charges related to impairment of long-lived assets, including right-of-use lease assets. The remaining $120 million will be cash charges primarily for employee separation benefits.

The plan focuses on streamlining domestic and international support organizations and non-retail facilities. The company also plans to reduce operational complexity at its Starbucks Reserve and Roastery locations by applying learnings from core coffeehouse operations.

Starbucks expects to complete most plan actions by the end of the current fiscal year, with significant charges incurred in fiscal year 2026. The restructuring is part of the company's previously announced $2 billion cost savings initiatives.

The coffee chain has shifted its international business model so that nearly 90% of its coffeehouses are licensed rather than company-operated. The restructuring charges include impairments related to reassessment of asset groups associated with ongoing Starbucks Reserve and Roastery locations and optimization of non-retail support facilities.

The information was disclosed in a company statement regarding board-approved actions under its strategic plan.