Starbucks announces 900 employee layoffs, cafe closures in US and Canada
Starbucks will close around 1% of its company-operated cafes.
Starbucks is closing hundreds of its cafes in the US, Canada, and Europe and laying off 900 non-retail employees as part of its restructuring plans.
Brian Niccols, CEO of Starbucks, stated on Thursday that the company expects overall company-operated cafes in North America to decline by 1% in 2025.
“We will end the fiscal year with nearly 18,300 total Starbucks locations – company-operated and licensed – across the U.S. and Canada,” Niccols said.
As of June 29, the company has 18,734 cafes.
Starbucks will also be eliminating 900 jobs and closing many of its open positions.
“Non-retail partners whose roles are being eliminated will be notified tomorrow morning (Friday). We will offer generous severance and support packages, including benefits extensions,” Niccols said.
Despite announced closures, Starbucks has laid out plans to remodel 1,000 locations in the next 12 months, focusing on adding ‘texture, warmth, and layered designs’.
This latest move is seen as part of Niccol’s strategy to revive the brand amidst instance competition. Early this year, Niccols previously reduced the brand's menu by 30% in the US.
