Starbucks Announces Store Closures and Corporate Layoffs Amid Restructuring

Starbucks has announced plans to close underperforming stores and reduce its corporate workforce by approximately 900 positions as part of a $1 billion restructuring initiative. CEO Brian Niccol stated that the company aims to focus resources on enhancing customer service and creating a more welcoming coffeehouse environment.

The closures will affect locations unable to meet customer and partner expectations or lacking a clear path to profitability. Employees at these stores will be notified and offered transfers where possible, with comprehensive severance packages for those unable to transfer. Despite the closures, Starbucks projects a net decline of about 1% in its North American store count, ending fiscal year 2025 with nearly 18,300 locations.

In addition to store closures, the company will eliminate approximately 900 non-retail corporate roles and freeze many open positions. Affected employees will receive severance, benefits extensions, and other support. During the transition, non-essential employees are asked to work from home on September 25–26.

This restructuring follows an earlier round of 1,100 corporate layoffs in February. Starbucks Workers United, the union representing many store employees, has expressed concern over the closures and layoffs, highlighting CEO Niccol's compensation and company expenditures as evidence that Starbucks can afford to reach a fair agreement with its unionized workforce.