Operations

Starbucks shuttering stores, eliminating 900 jobs

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September 25, 2025

Starbucks is undergoing a significant corporate restructuring and rationalization of its North American store portfolio, announcing the elimination of nearly 900 non-retail jobs and a net decline of about 1% in company-operated coffeehouses, according Brian Niccol, chairman and chief executive officer. He posted an open letter Thursday to employees, whom the company refers to as "partners."

The actions are part of the company's Back to Starbucks plan, aimed at redirecting resources to improve the customer experience and in-store operations.

Niccol said the decisions were made to prioritize customer-facing roles and store investments.

"Both are grounded in putting our resources closest to the customer so we can create great coffeehouses, offer world-class customer service and grow the business," Niccol wrote in the letter.

The reduction in force includes the elimination of approximately 900 existing non-retail partner roles, as well as the closure of many open corporate positions. Those affected will be notified Friday and offered "generous severance and support packages," according to the CEO.

Closing stores

The company also completed a review of its North America coffeehouse portfolio, identifying locations that "don't see a path to financial performance" or where the physical environment fails to meet company standards.

While Starbucks regularly opens and closes locations, Niccol noted this action is "more significant." Despite the closures, the company's overall count of company-operated locations in North America is expected to see a net decline of about 1% in fiscal year 2025 after accounting for new openings. Starbucks projects it will end the fiscal year with nearly 18,300 total locations across the U.S. and Canada, including licensed stores.

Impacted store partners will be notified this week and offered transfers to nearby locations where possible, or comprehensive severance packages if they cannot be immediately placed.

Niccol acknowledged the impact of the closures on local communities.

"Our coffeehouses are centers of the community, and closing any location is difficult," he said.

Looking ahead, the company plans to focus investment on its existing footprint, including a plan to "uplift more than 1,000 locations" over the next 12 months to improve design and atmosphere. Niccol stressed that the short-term adjustments are necessary for long-term health.

"I believe these steps are necessary to build a better, stronger, and more resilient Starbucks that deepens its impact on the world and creates more opportunities for our partners, suppliers, and the communities we serve," Niccol said.

In July, Starbucks reported mixed financial results for its third quarter of 2025, revealing a significant miss on earnings per share but a beat on revenue.

The coffee giant posted an adjusted EPS of 50 cents, falling short of analysts' forecasts of 65 cents by 23.08%. Revenue, however, came in at $9.5 billion, surpassing the projected $9.29 billion by 2.26%.

Starbucks' stock declined 0.75% in aftermarket trading, closing at $93.44, reflecting investor concerns over the EPS miss.