Starbucks to reduce North American store count by 1% with restructuring plan

Starbucks is implementing a restructuring plan that involves laying off 900 non-retail employees and shutting down underperforming stores in the United States and Canada. This strategy is estimated to cost the coffee giant approximately $1 billion, covering store closures, support organization changes, and other restructuring initiatives as outlined in a filing with the Securities and Exchange Commission (SEC) on September 23, 2025.

Brian Niccol, the CEO of Starbucks, communicated in a letter to employees about the forthcoming alterations. He specified that the reshuffling would reduce Starbucks’ North American presence by 1% by the end of this month, concluding fiscal year 2025 with nearly 18,300 total locations in the U.S. and Canada. He also affirmed plans for growth in coffeehouses in fiscal year 2026 as part of ongoing business investments and development.

This isn’t the first instance of layoffs this year. In February 2025, Starbucks eliminated 1,100 support roles and other unfilled positions. This move was preceded by Niccol’s January 2025 announcement regarding a thorough review of how support teams are structured.

Niccol’s strategic vision for Starbucks was unveiled in November 2024, emphasizing a return to Starbucks’ roots as the “Community Coffee House.” Subsequently, in July 2025, a program was introduced to enhance 1,000 North American stores by the conclusion of calendar 2026. This initiative includes reinstating thousands of seats that had been removed from stores and introducing more inviting and textured designs.

In his letter, Niccol elucidated that these adjustments are intended to consolidate successful strategies and allocate resources towards them effectively. Initial feedback from the enhanced coffeehouses has shown indicators of success – customers visit more frequently, linger longer, and provide positive reviews. Notably, investing in more Green Apron partner hours, ensuring additional staffing during peak times, showed improvements in transaction volumes, sales figures, service efficiency, and elevated partner satisfaction and engagement.

Starbucks remains committed to fostering a more dynamic, customer-centric environment through these operational changes. Prioritizing proven strategies, enhancing store experiences, and supporting employees are central to the company’s mission to cultivate sustained growth and customer loyalty.