Starbucks CEO Unveils 900 Job Cuts, Store Closures in Turnaround Push To Win Back Customers

A little more than one year ago, Brian Niccol was lured to Starbucks from Chipotle Mexican Grill with a $100 million pay package. Niccol took over as CEO and has been implementing a turnaround plan aimed at restoring Starbucks’s mojo and convincing the public that $6 for a Grande Caffè Latte is a good deal. On Thursday morning, the next chapter of that turnaround was revealed: a restructuring plan that includes cutting 900 employees and closing certain stores as part of the company’s “Back to Starbucks” strategy.

In an 8-K filing, Starbucks revealed that its Board has approved a restructuring plan under its “Back to Starbucks” strategy, which includes the closure of some coffeehouses that lack a clear path to meeting brand standards or achieving financial performance. Most of these closures are expected to be completed by the end of the year.

Starbucks is also restructuring its corporate structure to focus more directly on coffeehouses and customers. These total restructuring costs will amount to $1 billion, with 90% of the costs tied to North American operations.

Niccol provided additional details on the restructuring in his letter to shareholders.

Here’s a breakdown of that:

Coffeehouse Portfolio Review:

• Locations unable to meet brand standards or financial goals will be closed.

• Net effect: ~1% decline in company-operated stores in North America in FY2025, leaving ~18,300 U.S. and Canadian locations (operated + licensed).

• FY2026: growth expected as new stores open. Over the next 12 months, 1,000+ stores will be “uplifted” with upgraded designs.

• Impacted employees will be offered transfers where possible; severance will be provided otherwise.

Non-Retail Role Reductions:

• Starbucks will cut ~900 non-retail jobs and close many open positions.

• Affected staff will receive severance and benefit extensions.

• Non-essential office staff are instructed to work from home during the transition.

Investment Priorities:

• More barista hours and staffing in stores.

• Elevated coffeehouse designs.

• Ongoing innovation and customer service enhancements.

Outlook:

• Early results from “uplifted” stores show higher traffic, longer visits, and improved partner engagement.

• Leadership stressed the difficulty of these decisions but framed them as necessary for long-term growth and resilience.

“While we’re making good progress, there is much more to do to build a better, stronger and more resilient Starbucks. As we approach the beginning of our new fiscal year, I’m sharing two decisions we’ve made in support of our Back to Starbucks plan. Both are grounded in putting our resources closest to the customer so we can create great coffeehouses, offer world-class customer service and grow the business,” Niccol wrote in the letter. 

Full Letter:

Later this week, Starbucks is expected to report its 4Q25 earnings. In July, the company posted its sixth consecutive quarterly sales decline at stores open for at least a year.

Total quarterly revenues have stalled over the last two years. 

Shares are down nearly 8% year-to-date and have been trading sideways for the past five years.

Hmmm Starbucks… 

UK Starbucks Employee screams at woman for misgendering him, then proceeds to violently assault a man filming the altercation. pic.twitter.com/6ahMsto49T

— Antifa Public Watch official (@UnmaskedAntifa) May 8, 2023

I’m convinced Starbucks recruits their employees from Antifa riots.

Starbucks inside Kroger
3420 Towne Road
Middletown, OH pic.twitter.com/kDeSAVqNSE

— ð“’ð“ªð“½ð“²ð“ª (@CB618444) September 23, 2025

Niccol, it’s time to unleash automation.