SEATTLE, October 4, 2025 – Starbucks (SBUX) closed over 450 U.S. stores this week and cut 900 corporate jobs as part of CEO Brian Niccol’s turnaround strategy.
The closures represent about 1% of Starbucks’ total North American locations and come as the coffee giant struggles with declining profitability at underperforming stores.
- Over 450 U.S. stores closed this week nationwide
- 900 corporate jobs eliminated in latest restructuring wave
- Closures target underperforming locations identified in “Project Bloom”
Market reaction & context
The store closures follow Starbucks’ comprehensive profitability review dubbed “Project Bloom,” which evaluated North American operations 1. The coffee chain has now eliminated approximately 2,000 corporate positions this year, including 1,100 jobs cut in February 4.
The restructuring comes amid broader challenges for restaurant chains facing labor cost pressures and changing consumer habits. Starbucks’ moves mirror similar cost-cutting efforts across the hospitality sector.
Leadership strategy shift
CEO Brian Niccol, who joined Starbucks earlier this year, announced the sweeping changes in September as part of his turnaround plan. The company said it would eliminate approximately 900 current non-retail partner roles and close many open positions 5.
The closures primarily target locations that have been underperforming financially, according to company statements. Additional retail job losses are expected as store closures are finalized 4.
Financial impact
The restructuring reflects Starbucks’ effort to improve profitability amid mounting operational pressures. Analysts noted the store closures were not unexpected given the company’s recent performance challenges 4.
The layoffs and closures form part of Niccol’s broader strategy to streamline operations and focus on profitable locations. The company has also implemented a hiring freeze as part of the cost-cutting measures 8.
Industry implications
The widespread closures highlight ongoing challenges in the retail coffee sector, where companies face pressure from rising labor costs and shifting consumer preferences. Starbucks’ actions could signal broader industry consolidation ahead.
The company’s focus on closing underperforming locations rather than expansion marks a strategic shift from previous growth-focused strategies. Investors will be watching for signs of improved per-store profitability in upcoming quarters.
Not investment advice. For informational purposes only.
References
1Wall Street Journal (October 4, 2025). “Starbucks’s Roller Coaster Week of Job Cuts and Store Closures”. Retrieved October 4, 2025.
2FirstSquawk (October 4, 2025). “Starbuck’s roller coaster week of job cuts and store closures – wsj”. X (Twitter). Retrieved October 4, 2025.
3Newsweek (October 3, 2025). “Starbucks closing stores nationwide: List of locations impacted”. Retrieved October 4, 2025.
4Seattle Times (October 3, 2025). “Starbucks’ sweeping store closures aren’t a surprise. Here’s why”. Retrieved October 4, 2025.
5Starbucks (September 25, 2025). “Message from Brian: An Important Update”. Retrieved October 4, 2025.
6Investopedia (September 30, 2025). “Starbucks Closed Over 450 Stores This Week-Is Your Favorite Location on the List”. Retrieved October 4, 2025.
7Reddit (October 3, 2025). “Starbucks Shut Down Hundreds Of U.S. Stores This Week-Here’s Why”. Retrieved October 4, 2025.
8Fox Business (September 25, 2025). “Starbucks to close stores, cut jobs as part of turnaround strategy”. Retrieved October 4, 2025.
9CNN (September 25, 2025). “Starbucks announces significant store closures and layoffs”. Retrieved October 4, 2025.