Thu Sep 25 12:00:00 UTC 2025: **News Article:**
**Starbucks Announces Store Closures and Layoffs in Ambitious Turnaround Plan**
**SEATTLE, WA** – Starbucks is embarking on a significant restructuring plan, announcing the closure of hundreds of underperforming stores this month and a second round of corporate layoffs, the company said Thursday. The move is part of CEO Brian Niccol’s effort to revitalize the struggling coffee chain, which is underperforming, even after menu changes and additions.
The company will close approximately 1% of its North American locations, or roughly 400 locations, before the end of September, bringing the total number of stores down to 18,300. The restructuring is expected to cost the company $1 billion.
According to Niccol, the store closures target locations that “unable to create the physical environment our customers and partners expect, or where we don’t see a path to financial performance.”
While the closures are substantial, Starbucks plans to remodel over 1,000 locations with a focus on creating a more inviting atmosphere, including cozier seating, more power outlets, and warmer color palettes.
In addition to the store closures, Starbucks will lay off another 900 corporate employees, following 1,000 layoffs earlier this year. Affected employees will be notified Friday and receive severance packages. Many open positions within the company will also be closed.
Niccol, who joined Starbucks about a year ago, has been working to revive the coffee chain with menu changes, some that haven’t been popular with staff due to long times to make drinks.
While the moves are described as difficult, Niccol said they are “necessary to build a better, stronger and more resilient Starbucks.” In addition to store remodeling, the Starbucks is rolling out smaller changes to enhance the in-store experience, such as self-serve milk and sugar stations. The coffee chain also tweaked its name to “Starbucks Coffee Company” to reinforce its coffee roots.
Starbucks (SBUX) shares were flat in premarket trading following the announcement.
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