Seattle, September 25, 2025: Starbucks will lay off nearly 900 non-retail employees and shut a number of underperforming stores in the United States and Canada as part of a wider restructuring drive. Employees whose positions are being eliminated will be informed on Friday, the company said.
The coffee chain noted that a review of its operations showed several locations were missing financial targets or failing to deliver the customer experience associated with the brand. “This is a more significant action that we understand will impact partners and customers. Our coffeehouses are centres of the community, and closing any location is difficult,” Starbucks CEO Brian Niccol said in a letter to staff on Thursday.
The company expects to finish the fiscal year with 18,300 stores across North America, a net reduction of 124 from last year. It is unusual for the coffee giant to end a fiscal year with fewer outlets.
Niccol, who took charge a year ago, is known for his turnaround work at Chipotle, where he oversaw a sharp revival in sales, profits, and stock price. At Starbucks, he is pushing similar reforms to revive growth and sharpen operational performance.
The company confirmed that employees impacted by the layoffs will be provided severance and support packages. Starbucks said the restructuring was part of its long-term strategy to strengthen the brand, streamline operations, and reposition its network of stores.
