Overview

• Closures of underperforming company‑operated cafés in the U.S. and Canada will reduce the North America footprint by about 1%, with roughly 18,300 locations expected at fiscal year end.
• About 900 non‑retail roles are being eliminated, with notifications Friday, many open corporate positions closed, and severance with benefits extensions offered.
• Starbucks estimates approximately $1 billion in charges, including about $150 million for separation benefits and roughly $850 million for store closures and lease exits.
• Stores selected for closure were deemed unable to provide the physical environment the brand expects or lacked a path to financial performance, with transfers offered where possible.
• Implementation began this week, including the closure of Seattle’s Pike Place Reserve Roastery, as Starbucks Workers United seeks effects bargaining and the company targets more than 1,000 remodels next year.