Starbucks Announces Store Closures and Layoffs Amid Restructuring Efforts

Starbucks is implementing a nationwide restructuring plan that includes the closure of several stores and the layoff of approximately 900 corporate employees. The company aims to close about 1% of its North American locations, with some closures already confirmed in Chicago. A Starbucks spokesperson declined to provide a comprehensive list of affected stores.

In Chicago, the Starbucks at 1588 N. Milwaukee Ave. in Wicker Park is among those closing. A notice on the store's door stated, "We've made the incredibly difficult decision to close this Starbucks location by the end of the week." The store's last day of operation is Saturday. Other Chicago locations, including those at 1599 N. Clybourn Ave. in Lincoln Park and 1174 E. 55th St. in Hyde Park, are also set to close on Saturday.

In a message to employees, Starbucks CEO Brian Niccol described the closures as part of a "turnaround journey" following a company-wide review. He stated, "During the review, we identified coffeehouses where we're unable to create the physical environment our customers and partners expect, or where we don't see a path to financial performance, and these locations will be closed." The company plans to introduce updated designs to more than 1,000 stores over the next year.

Some employees at the closing stores will be offered transfers to nearby locations, while others will face layoffs. This announcement comes amid ongoing unionization efforts among Starbucks baristas nationwide, who are advocating for better wages and job protections. The Starbucks union has criticized the closure plan, and a pre-planned rally of Starbucks workers was held Thursday outside a store in Edgewater, which is also slated to close. Starbucks spokesperson Sam Jefferies stated that union status is not a factor in store closure decisions.