Thu Sep 25 19:45:04 UTC 2025: ## Starbucks Announces Hundreds of Store Closures and Layoffs Amid Restructuring

**Seattle, WA** – Starbucks announced Thursday it will close hundreds of underperforming stores across North America, leading to an estimated 900 layoffs, as part of a $1 billion restructuring effort aimed at reviving flagging sales. The move will reduce the company’s U.S. and Canadian store count by approximately 1 percent, impacting roughly 500 company-owned locations.

CEO Brian Niccol, who is overseeing the restructuring, aims to restore the “coffeehouse” feel to Starbucks outlets and improve customer experience after six consecutive quarters of declining U.S. sales. The company cited the inability to create the desired physical environment or achieve financial performance at the affected locations as the reason for the closures.

The announcement comes amidst ongoing tension between Starbucks and Workers United, the union representing over 12,000 baristas. Notably, the closures include Starbucks’s flagship unionized location in Seattle, which also houses a roastery, and a unionized store in Chicago. Workers United condemned the closures, stating that they demonstrate the need for union representation for Starbucks employees. The union has pledged to bargain for affected workers to secure transfers to other locations.

A Starbucks spokesperson denied that union status played a role in the store closure decisions.

The restructuring also includes cuts to support teams and the elimination of many open positions. These cuts follow 1,100 corporate layoffs announced earlier this year. While Starbucks is making these cuts, the public has criticised Niccol’s compensation package valued at $95.8m last year, 6,666 times more than the average barista.

Analysts at TD Cowen believe these aggressive actions fit within management’s previously announced zero-based budgeting framework. Niccol has also focused on investing in existing stores to reduce service times and streamline operations, and the company will invest in technology to improve customer experience.

Despite the closures, Starbucks expects to end the fiscal year with nearly 18,300 total locations across the U.S. and Canada.

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