Starbucks to Close Hundreds of Stores and Cut 900 Jobs in $1 Billion Restructuring Plan
Starbucks is making big changes to reverse a sales slump, announcing it will close over 100 underperforming stores—mostly in North America—and lay off around 900 corporate workers. CEO Brian Niccol called the move “a more significant action that we understand will impact partners and customers,” adding that these locations couldn’t meet customer expectations or deliver strong financial performances. Despite the cuts, Starbucks says it’s still opening 80 new stores in the UK and remodeling more than 1,000 cafes to create more inviting spaces.
The restructuring is part of a $1 billion plan aimed at simplifying operations and focusing investments “closer to the coffeehouse and the customer.” Most of the cost—about $850 million—will come from shutting down stores, with another $150 million in severance and employee support. This follows an earlier round of 1,100 job cuts and menu changes aimed at improving service and trimming complexity.
Niccol, who took over last year, says the goal is to turn Starbucks into “a better, stronger and more resilient” company. But the shift hasn’t been without tension—some baristas have pushed back against uniform changes, and newer, more complex drinks have sparked stress during busy shifts. Even so, Starbucks says it’s committed to “deepening its impact on the world” and staying true to its coffeehouse roots.
