Sarah KnieserSep 29, 2025 4 min read

Starbucks to Close 430 Stores, Cut 900 Jobs

Some locations will soon close as part of a major restructuring.
Some Starbucks locations will soon close as part of a major restructuring. | Adobe Stock

Starbucks is preparing for a major reset. The Seattle-based coffee chain announced it will close hundreds of locations in North America and eliminate 900 corporate jobs as part of its “Back to Starbucks” transformation plan. CEO Brian Niccol, who took over in September 2024, outlined the changes in a memo to employees on Thursday, Sept. 25.

The closures represent about 1% of Starbucks’ U.S. and Canadian store footprint. When its fiscal year ends later this month, the company expects to have around 18,300 stores across the two countries, down from 18,734 as of June 29. That means Starbucks will operate roughly 430 fewer locations than it did just three months ago.

Why Starbucks Is Closing Stores

Niccol explained that the closures are focused on underperforming stores and locations that no longer meet the company’s expectations for customer experience. “We’re closing stores where we’re unable to create the physical environment our customers and partners expect, or where we don’t see a path to financial performance,” Niccol said in the memo, which was also posted on the Starbucks blog.

Starbucks
Adobe Stock

The company did not release a list of affected stores. Employees at closing locations will be notified this week and offered opportunities to transfer to nearby stores.

In addition to store closures, Starbucks is also shutting down 80 to 90 “Pick Up” stores in more than 20 states. These smaller shops were designed exclusively for mobile orders and quick pickups but failed to deliver the level of customer engagement the company wants to prioritize.

Job Cuts Hit 900 Employees

The restructuring will also affect about 900 corporate employees, mostly in what Starbucks calls “non-retail partner roles.” Those workers will be notified of their job status on Friday, Sept. 26. Niccol said Starbucks would provide “generous severance and support packages including benefits extensions.”

In his memo, Niccol also told office-based employees to work from home for the rest of the week while leadership carries out the restructuring.

A Strategy for Growth and Customer Experience

The closures and job cuts are part of a larger turnaround strategy Niccol has dubbed “Back to Starbucks.” Drawing on his experience leading Chipotle through its own transformation, Niccol said the goal is to sharpen the company’s focus on what works best.

“We’re investing in green apron partner hours, more partners in stores, exceptional customer service, elevated coffeehouse designs, and innovation to create the future,” Niccol wrote. He emphasized that Starbucks would continue to manage costs while concentrating resources on areas that drive long-term growth.

barista
Adobe Stock

One major investment is in store redesign. Starbucks plans to upgrade more than 1,000 coffeehouses, adding more comfortable seating, power outlets, and layered design elements meant to encourage customers to linger. Early results have been promising. “Customers are visiting more often, staying longer, and sharing positive feedback,” Niccol said.

The company is also investing in staffing, adding more baristas during peak hours. According to Starbucks, stores with increased staffing saw stronger sales, faster service times, and improved employee satisfaction.

Balancing Closures With Expansion

While the latest announcements focus on closures, Starbucks continues to open new locations in select markets. Many of these new stores reflect the company’s emphasis on community space and design upgrades. By removing low-performing shops and reinvesting in high-potential ones, Starbucks hopes to strengthen its overall brand presence and maintain its leadership in the global coffee market.

What Customers Can Expect

For customers, the changes may be felt in two ways: fewer options in some neighborhoods, but improved experiences in the stores that remain. Starbucks says the redesigned stores will offer warmer environments, more seating, and improved service, while expanded staffing should help reduce wait times during busy hours.

Niccol framed the closures and layoffs as necessary steps to protect Starbucks’ future. “These steps are to reinforce what we see is working and prioritize our resources against them,” he said. “We will continue to carefully manage costs and stay focused on the key areas that drive long-term growth.”

By the end of September, Starbucks will operate about 18,300 stores in North America, compared with nearly 18,734 just three months earlier. The reduction may be significant, but Starbucks is betting that fewer, stronger stores will help the company reconnect with customers and chart a sustainable path forward.

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