Starbucks: store closures and layoffs in North America, billion-dollar restructuring begins

By: Trademagazin Date: 2025. 09. 26. 10:52

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Starbucks has begun a major restructuring: in September, it closed hundreds of stores in North America and launched another wave of layoffs. The closures affected about one percent of its North American network: 18,300 of the previous 18,734 units remained in operation by the end of September, CNN reports.

CEO Brian Niccol said in an internal letter that the locations were closed that did not provide the environment expected by customers and employees, or where they did not see an opportunity for financial growth. He added that each coffee shop plays an important role in the life of the community, so the closures were difficult decisions.

The company had already let go of about a thousand employees at the beginning of the year, and now it has laid off another 900 workers. Although Starbucks has previously closed underperforming units, the CEO also called the scale of this measure extremely significant.

As part of the reorganization, the company is modernizing more than a thousand store locations. The revamped units will feature more comfortable chairs, more outlets and a more welcoming color scheme. The changes are intended to put the coffee chain back on a growth path.

The restructuring is estimated to cost $1 billion. However, the company’s financial situation remains under pressure: its stock price has fallen about 12 percent in the past year and sales have shown no clear turnaround.

Niccol took over the company nearly a year ago with the goal of reinvigorating Starbucks. The latest moves are a sign that management is taking drastic measures in a difficult market environment.

Tags: Starbucks