SEATTLE, September 25, 2025 – Starbucks (SBUX.O) will eliminate 900 corporate jobs and close underperforming stores as part of a 1 billion restructuring plan under CEO Brian Niccol.
- Coffee chain cutting 900 non-retail corporate positions
- Closing roughly 1% of North American locations
- 1 billion restructuring cost expected
Market reaction & context
The layoffs represent Starbucks’ latest effort to streamline operations amid declining sales and increased competition in the coffee market. The company will shutter approximately 100 locations across the United States and Canada, focusing on underperforming stores 1.
Starbucks’ restructuring comes as other major restaurant chains face similar pressures, with McDonald’s and Dunkin’ also announcing operational adjustments this year. The cuts affect roughly 1% of Starbucks’ North American store footprint 2.
Leadership strategy
CEO Brian Niccol, who joined Starbucks earlier this year from Chipotle, announced the changes as part of his “Back to Starbucks” turnaround strategy 3. The plan aims to refocus resources on core store operations and customer experience improvements.
The company will freeze hiring for non-retail positions while investing savings back into store-level improvements and barista training programs 4. Niccol said the moves are designed to “build a better, more focused company” in internal communications 5.
Financial impact
The restructuring will cost Starbucks approximately 1 billion, with expenses primarily related to severance payments and store closure costs 6. The company expects to realize ongoing savings from reduced corporate overhead and eliminated underperforming locations.
Starbucks has not disclosed specific timelines for the store closures or job cuts. The 900 eliminated positions represent corporate and support roles rather than in-store baristas or retail workers 7.
Industry context
The coffee giant’s moves reflect broader challenges facing the restaurant industry, including rising labor costs and shifting consumer preferences. Competitors like Dutch Bros and local coffee chains have gained market share in recent quarters.
“The company is eliminating approximately 900 non-retail corporate positions as part of a strategy to reduce expenses and reinvest in store operations,” according to industry reports 8.
Outlook
Starbucks expects the restructuring to position the company for improved profitability and operational efficiency in 2026 and beyond. The moves signal Niccol’s commitment to transforming the coffee chain’s corporate structure while maintaining its retail presence.
Analysts will monitor how the cost savings translate to improved margins and whether store closures impact overall revenue growth in coming quarters.
Not investment advice. For informational purposes only.
References
1(September 25, 2025). “Starbucks to close some stores, cut 900 jobs amid turnaround”. USA Today. Retrieved September 25, 2025.
2(September 25, 2025). “Starbucks to close hundreds of stores, cut jobs in restructuring efforts”. KATV. Retrieved September 25, 2025.
3(September 25, 2025). “Starbucks to close stores, cut jobs as part of turnaround strategy”. Fox Business. Retrieved September 25, 2025.
4(September 25, 2025). “Starbucks to Cut Jobs, Close Stores and Take 1 Billion Hit”. The New York Times. Retrieved September 25, 2025.
5(September 25, 2025). “Starbucks will close more than 100 locations and lay off another 900”. Restaurant Business Online. Retrieved September 25, 2025.
6(September 25, 2025). “Starbucks to Close Hundreds of Coffee Shops, Lay Off 900 Workers”. Barron’s. Retrieved September 25, 2025.
7(September 25, 2025). “Starbucks CEO says company plans to close underperforming stores”. MSN. Retrieved September 25, 2025.
8(September 25, 2025). “Starbucks to Close Stores, Lay off 900 Workers as Part of Turnaround Plan”. U.S. News. Retrieved September 25, 2025.