Starbucks to cut 900 corporate jobs and close dozens of North American stores in major restructuring

Starbucks announced plans to lay off approximately 900 corporate employees and close around 100 North American stores as part of a significant restructuring aimed at reviving the coffee giant's sales.

25 sept 2025 - 15:37 • 3 min read

Starbucks is undertaking a substantial restructuring that will result in the elimination of around 900 corporate jobs and the closure of approximately 100 cafes across North America, according to an announcement from CEO Brian Niccol.

The move is part of a broader $1 billion restructuring plan designed to reverse a recent sales slump for the world's largest coffee chain. This follows a previous round of layoffs earlier this year, which saw 1,100 corporate positions cut.

**Sales Struggles Drive Restructuring**

The company's decision comes as Starbucks grapples with declining sales in the U.S. for six consecutive quarters. Analysts attribute this downturn to consumers being more hesitant to purchase pricier items amid persistent inflation.

In a letter to employees, Niccol stated that the restructuring is intended to "reinforce what we see is working and prioritize our resources against them." He added, "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."

**Impact on Stores and Staff**

Starbucks plans to reduce its store count by about 1% in North America, a move that will bring the total number of stores in the region down from 18,734 to approximately 18,300 by the start of fiscal year 2026. While the company typically opens and closes locations annually, Niccol acknowledged that this action is "more significant" and will impact both employees and customers.

The 900 employees affected by the layoffs work in non-retail roles. The company indicated that efforts are being made to find new positions for some of the staff whose stores are being closed.

Approximately 90% of the restructuring costs are attributed to Starbucks' North American operations, with an estimated $150 million allocated for employee separation and $850 million for store closure-related expenses.

**Union Reaction and Ongoing Negotiations**

Starbucks Workers United, a union representing employees at hundreds of Starbucks locations, criticized the company's decision, stating that it "makes it clear things are only going backwards" at Starbucks. The union emphasized that addressing issues at Starbucks requires prioritizing the needs of the company's frontline workers.

Niccol's letter to employees did not directly address the ongoing union organizing efforts. Over 650 Starbucks stores in the U.S. have unionized, with workers seeking first union contracts. Negotiations have been strained since Niccol took over as CEO last September, and union members have voiced criticism of changes implemented under his leadership, threatening further strikes.

Starbucks maintains its commitment to fair bargaining, while the union has pushed for improved working conditions and contract agreements. The company announced plans to "uplift" over 1,000 store locations in the coming year, aiming to enhance their design and customer experience.

Shares in Starbucks saw a slight decline of 1% following the announcement.