Under normal circumstances, job cuts—like the ones recently seen at coffee giant Starbucks (SBUX)—are welcome signs to shareholders. They demonstrate the ability to make hard choices, and also, cut costs, which means a greater chance at profitability. But the recent job cuts at Starbucks are starting to worry investors. That became clear today when shares were down fractionally in Tuesday morning’s trading.
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Starbucks has lost 1,100 corporate jobs so far this year, and has been working to retool its cafes as part of the “Back to Starbucks” initiative. But another new wrinkle is reportedly prompting some concern as well: its roasting plants are going from a seven-day schedule to a five-day work week starting in January 2026.
Reports note that management is calling this an effort to move capital from production to its storefronts, which Starbucks has had a keen interest in revamping as part of its move to make “third places” a big deal again, and get more people into Starbucks, buying drinks, and eating food while they are there. The plants being pared back are in Georgia, Nevada, Pennsylvania, South Carolina, and of course, Washington state.
The Value-Adding Barista
Meanwhile, CEO Brian Niccol’s plan to augment the barista lineup could be a welcome plan after all. A recent report featured several Starbucks baristas sharing their particular tweaks to Starbucks beverages that make them particularly tasty.
Baristas recommended such things as the “upside down blonde caramel macchiato,” which uses “…either half pumps of white mocha or cinnamon dolce and cinnamon powder on top.” Another called for a drink known as “mop water,” which starts with a matcha lemonade, but adds coconut milk, strawberry puree and peach juice to make a surprisingly tasty treat. That barista acknowledged, though, that the drink looks awful despite its impressive taste. The key takeaway, though, is that baristas making recommendations like this catch attention and make sales. So Niccol’s plan to augment the barista lineup for the sake of friendliness and connection could indeed provide a path to better sales.
Is Starbucks Stock a Good Buy?
Turning to Wall Street, analysts have a Moderate Buy consensus rating on SBUX stock based on 14 Buys, eight Holds and two Sells assigned in the past three months, as indicated by the graphic below. After a 12.97% loss in its share price over the past year, the average SBUX price target of $100.68 per share implies 16.68% upside potential.
