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Gov. Ferguson held talks with Starbucks before Nashville move

Gov. Ferguson
Gov. Ferguson

Washington Gov. Bob Ferguson claims he “spoke” to Starbucks, likely in an attempt to keep the coffee giant in Seattle, but failed, after the company announced it is moving forward with a major expansion in Nashville that will shift thousands of jobs out of the region.

Ferguson told KOMO News on Tuesday that he had “multiple personal conversations” with Starbucks leadership, including a “lengthy” discussion ahead of the company’s announcement that it plans to build out a major corporate presence in Tennessee.

“Starbucks is an important part of the fabric of our community here in Washington state, to put it mildly,” Ferguson said, adding that he would work to support the company “in every way possible.”

Despite those efforts, Starbucks is pushing ahead with a $100 million investment in Nashville, where it plans to move or hire 2,000 workers over the next five years — a number that could amount to more than half of its current Seattle-area workforce.

Starbucks has insisted the move is an expansion, not a relocation, and says Seattle will remain its North America and global headquarters.

But the timing has raised questions, particularly as the company reduces parts of its presence in Seattle.

Starbucks has announced five store closures in the city, including four unionized locations in high-traffic areas. It has also closed both of its Seattle Reserve Roasteries, including the flagship Capitol Hill location, and laid off more than 900 workers in Seattle and Kent as part of broader corporate cuts.

Sources previously told The Ari Hoffman Show on Talk Radio 570 KVI that Starbucks has already paid out the remainder of a lease on a Seattle-area office and vacated the building ahead of the Nashville move, though the company has not publicly confirmed that detail.

The company’s changes follow months of labor unrest centered in Seattle.

In November 2025, unionized Starbucks workers launched a nationwide strike on Red Cup Day, later escalating into an encampment outside Starbucks’ Seattle headquarters. The demonstrations drew support from prominent Democrats, including Rep. Pramila Jayapal, Sen. Bernie Sanders, Rep. Ro Khanna, and Seattle Mayor Katie Wilson, who joined workers on the picket line.

Ferguson framed Starbucks’ decision as part of a wider economic shift rather than a local issue.

“We understand that any business has to do what they feel is best for them, including expanding their footprint around the country,” he said. “They’re not the first company to do that.”

He also pointed to larger industry changes, particularly artificial intelligence, as a factor in job losses.

“What’s happening with AI may affect Washington disproportionately, given the tech industry here,” Ferguson said.

But concerns about the state’s business climate have been building.

Microsoft President Brad Smith warned in a 2025 interview that rising costs could make it harder to retain jobs in Washington.

“I probably worry more right now about the business climate in Washington than at any other time in the last 30 years,” Smith said, adding that policies affecting employers could “make everything harder.”

Earlier this year, Ferguson signed into law a new state income tax. The day the tax passed the Democrat-controlled Legislature, Starbucks founder Howard Schultz announced he was moving to Florida. Other companies and investors also began moving out of state, stoking fears of a business exodus.

Major employers, including Amazon, Microsoft, and Meta, have all announced job cuts in Washington in recent months. There have been over 30,000 jobs in the tech sector since the beginning of the year.

Seattle Mayor Katie Wilson declined to directly address the relocation at a recent press conference, twice telling KIRO 7, “This is not the subject of our press conference,” before claiming that the Nashville expansion had been in development for years and expressing confidence Seattle would remain Starbucks’ headquarters.

However, local reporting previously revealed that Starbucks had been exploring office space closer to home in nearby Bellevue, but chose Nashville following the passing of the income tax.

Wilson did not help the situation. The day she was elected, Wilson left her victory press conference and went straight to the barista picket line and encouraged people to boycott Starbucks.

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