Starbucks is set to lay off more than 900 staff across North America and Europe as the chain grapples with a changing market.
Earlier this year, Brian Nichol, Chairman and Chief Executive Officer of Starbucks, shared that the global coffee chain was carefully reviewing its North America coffeehouse portfolio through the additional lens of our Back to Starbucks plan. Nichol said the goal was for every coffeehouse to deliver a warm and welcoming space with a great atmosphere and a seat for every occasion. Now, it will see 900 staff members leave the company.
During the review, Starbucks identified coffeehouses where it was unable to create the physical environment its customers and partners expect, or where the company doesn’t see a path to financial performance, and these locations will be closed. A majority of these closures will take place throughout the United States, Canada and Europe.
“Each year, we open and close coffeehouses for a variety of reasons, from financial performance to lease expirations. This is a more significant action that we understand will impact partners and customers. Our coffeehouses are centres of the community, and closing any location is difficult,” said Nichol.
To put it into context, Nichol said since Starbucks has already opened numerous coffeehouses over the past year, its overall company-operated count in North America will decline by about one percent in fiscal year 2025 after accounting for both openings and closures. This will still impact approximately 900 employees.
Starbucks will end the fiscal year with nearly 18,300 total Starbucks locations, both company-operated and licensed, across the U.S. and Canada. In fiscal year 2026, Nichol said the company was expected to grow the number of coffeehouses it operates as it continues to invest in the business. Over the next 12 months, Starbucks also plan to uplift more than 1,000 locations to introduce greater texture, warmth, and layered design.
“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,” he added.
“To those partners who will be leaving, I want to say a profound thank you. To those continuing on our turnaround journey, I deeply appreciate your commitment to helping us get back to Starbucks.”
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