Seattle — Starbucks Coffee has announced that it will be eliminating roughly 900 non-retail U.S. jobs, with additional plans to close several hundred underperforming company-operated stores, as part of a broader $1 billion restructuring effort. The company’s store count will decrease by about 1 percent, which translates to roughly 500 closures for the company, as reported by CNBC. Starbucks plans to end its fiscal year with almost 18,300 North American locations, including both company-operated and licensed cafés.
“In fiscal year 2026, we’ll grow the number of coffeehouses we operate as we continue to invest in our business,” says Brian Niccol, chairman and CEO of Starbucks Coffee. “Over the next 12 months, we also plan to uplift more than 1,000 locations to introduce greater texture, warmth, and layered design.”
Niccol additionally stated that baristas from closing locations will receive severance packages or will be transferred to nearby locations. The latest store closures and layoffs at Starbucks are part of Niccol’s wide-ranging turnaround strategy in his first year at the company.
“As we build toward a better Starbucks, we’re investing in green apron partner hours, more partners in stores, exceptional customer service, elevated coffeehouse designs and innovation to create the future. We will continue to carefully manage costs and stay focused on the key areas that drive long-term growth,” says Niccol.
Starbucks has reported six consecutive quarters of declining same-store sales, as well as a previous round of 1,100 corporate layoffs in February.
Starbucks is a global coffeehouse chain that started in Seattle’s Pike Place Market in 1971, evolving from a whole bean retailer to a renowned brand known for its high-quality coffee, espresso beverages and tea. As of 2022, the company operates more than 35,000 stores across 80 countries.
For more information, visit https://www.starbucks.com/.
SOURCE: Starbucks Coffee