Hundreds of Starbucks employees are facing layoffs as the company streamlines resources and closes stores throughout North America in part of its turnaround plan, “Back to Starbucks.”
The company announced approximately 900 non-retail roles will be eliminated “as we built towards a better Starbucks.”
The decision comes as an effort to reduce “headcount and expenses.”
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Employees affected by the cuts will be notified Friday, Sept. 26.
“We will continue to carefully manage costs and stay focused on the key areas that drive long-term growth,” Brian Niccol, chairman and chief executive officer wrote in a release.
Additionally, the company said it will also close several stores throughout the U.S. and Canada by year’s end — though where those closures will happen and when were not been disclosed.
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Niccol said Starbucks will end Fiscal Year 2025 with a store count down 1% than it started with, taking into account both new stores that have opened this year and the upcoming closures.
“We will end the fiscal year with nearly 18,300 total Starbucks locations – company operated and licensed – across the U.S. and Canada,” the statement reads.
Niccol said that when the company launched its “Back to Starbucks” initiative, the company reviewed its North America coffeehouse portfolio and found several areas for improvement.
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“During the review, we identified coffeehouses where we’re unable to create the physical environment our customers and partners expect, or where we don’t see a path to financial performance, and these locations will be closed,” Niccol said.
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“… We understand [closures] will impact partners and customers. Our coffeehouses are centers of the community, and closing any location is difficult.”
Coffeehouses slated for closure will be notified this week. Niccol said the company is “working hard,” to transfer employees to nearby locations where possible.