Starbucks to Close More Locations in Restructuring Effort

In an attempt to realign its business strategy, Starbucks has revealed plans to shut down several “unprofitable” stores as part of a broader $1 billion restructuring initiative. Alongside these closures, the company will cut around 900 non-retail jobs.

By the close of fiscal year 2025, Starbucks aims to reduce its store count to about 18,300, down from 18,734 as recorded on June 29. The announcement on Thursday indicated a projected decline of about 1% in the total number of stores across the U.S. and Canada.

In a detailed blog post shared with employees, Starbucks CEO Brian Niccol discussed the forthcoming “retirement and support packages,” which will include various benefits for affected workers.

“We will continue to manage costs carefully and focus on key areas that drive long-term growth,” Niccol stated. “During our review, we identified coffee houses that cannot provide the welcoming environment our customers and partners expect or that lack a viable path to financial stability. These locations will be shut down. Each year, we open and close stores for different reasons related to performance and viability,” he added.

Additionally, Niccol mentioned that the company is investing in enhancing customer experiences, staffing, and technology.

“These measures are aimed at strengthening our priorities and optimizing our resources. Early results from improved coffee houses indicate that customers are visiting more often, staying longer, and giving us positive feedback,” he explained.

Since Brian Niccol took over as CEO in August 2024, the company’s stock has increased by roughly 9%.