Starbucks to close stores, cut 900 jobs
On Sept. 25, 2025, Starbucks announced a roughly $1 billion restructuring that will cut about 900 corporate/nonretail jobs and close roughly 1% of North American stores—ending the fiscal year with about 18,300 locations—a second round of layoffs after 1,100 cuts in February. The company disclosed roughly $450 million for breaking leases and about $150 million for severance, and said it will renovate more than 1,000 locations, trim about 30% of menu options, pursue a four‑minute drink goal, and maintain no upcharges for nondairy milks and free in‑cafe refills.
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Starbucks is closing more stores and laying off 900 workers
New information:
- Specific count: the new round targets 900 corporate employees (second wave after 1,100 cuts in February).
- Store metrics: Starbucks says store count will decline by about 1% and it will end the fiscal year with nearly 18,300 U.S. and Canada locations — implying ~200 store closures.
- Operational details: plan to renovate over 1,000 locations and invest in new openings; menu trimming (~30% of options), four-minute drink goal, no upcharges for nondairy milks and free refills for in-cafe customers.
- Source and timing: reported by NPR on Sept. 25, 2025 with direct memo quotes from CEO Brian Niccol.
Starbucks CEO says company plans to close underperforming stores
New information:
- $1 billion total overhaul charge disclosed in a regulatory filing
- $450 million anticipated cost for breaking leases early
- ~$150 million earmarked for severance/employee‑related expenses tied to cutting 900 nonretail positions
- Company expects North American store count to decline about 1% in fiscal 2025, ending the year with about 18,300 locations (down from 18,424 in fiscal 2024)
Starbucks to close stores, cut 900 jobs in $1 billion restructuring
New information:
- Starbucks will cut approximately 900 jobs nationwide.
- The restructuring program is valued at about $1 billion.
- Announcement made Thursday, Sept. 25, 2025; company said it will close stores as part of the plan.