The world’s largest coffee chain announced it will soon close more than 100 stores and is cutting 900 non-retail jobs as part of ongoing restructuring efforts. In a blog post issued Thursday, Starbucks CEO Brian Niccol announced the company expects to lose 1% of its company-operated stores in North America during fiscal year 2025.
Niccol said Starbucks anticipates ending the fiscal year with nearly 18,300 total locations in North America. That means a 1% loss in stores represents approximately 183 coffeehouses, however Starbucks did not provide an exact number of planned closures.
The coffee giant also did not provide a list of store closures, saying that employees at affected locations will be notified this week. Niccol said the company will “offer transfers to nearby locations where possible.” For those who can’t be transferred, the company will offer comprehensive severance packages.
The decision to close the coffeehouses comes after Starbucks conducted a review of its portfolio.
“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 wrote.
While a significant amount of coffeehouses will close, Niccol said the company will “uplift more than 1,000 locations to introduce greater texture, warmth, and layered design.”
Niccol’s announcement also confirmed that 900 non-retail positions in the company will be eliminated as well.
“As we build toward a better Starbucks, we’re investing in green apron partner hours, more partners in stores, exceptional customer service, elevated coffeehouse designs, and innovation to create the future,” Niccol wrote.
Niccol then advised office employees not required to be on site to work from home on Thursday and Friday. Niccol thanked the employees who will be losing their jobs for their efforts and said the cuts were difficult to make.
“I know these decisions impact our partners and their families, and we did not make them lightly. I believe these steps are necessary to build a better, stronger, and more resilient Starbucks that deepens its impact on the world and creates more opportunities for our partners, suppliers, and the communities we serve,” Niccol wrote.