"In its continued attempt to turn around flagging sales numbers, Starbucks announced on Thursday, September 25, 2025, that in the coming days the company will begin closing stores across North America, as well as laying off approximately 900 non-retail employees. This $1 billion restructuring (per the company's SEC filing) comes as part of the brand's "Back to Starbucks" plan, an attempt to improve the overall customer experience across the company by increasing the number of staff in the coffeehouses"
"In a public letter posted to the Starbucks website, chairman and CEO Brian Niccol stated that at the end of fiscal year 2025, the company will have fewer than 18,300 locations across the U.S. and Canada. At the end of June 2025, the company was operating 18,734 locations in this region, indicating a decrease of roughly 2.3% in retail shops."
"For those that cannot be immediately placed in another retail location, the company has promised comprehensive severance packages, as well as an invitation to return as the company moves forward and begins opening new coffee shops in fiscal year 2026. This is the second round of layoffs for non-retail Starbucks employees since Niccol took charge of the company in September of 2024. In February of 2025, the company laid off an additional 1,100 corporate employees, an action intended to streamline the company's operations."
Starbucks is initiating store closures across North America and laying off roughly 900 non-retail employees as part of a $1 billion restructuring under the Back to Starbucks plan. The company expects fewer than 18,300 U.S. and Canada locations at the end of fiscal 2025, down from 18,734 in June 2025, a roughly 2.3% reduction. Impacted retail staff will be notified and the company aims to transfer employees to nearby stores where possible, offering severance and invitations to return for those not immediately placed. The action follows earlier corporate cuts of 1,100 roles in February 2025.
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