Overview

• The company expects to end fiscal 2025 with nearly 18,300 U.S. and Canadian locations after a portfolio review targeting sites without a clear path to performance or the desired environment.
• Store employees at closing locations are being notified this week with transfer offers where possible and severance otherwise, while non‑retail staff will receive layoff notices on Friday.
• Starbucks estimates about $1 billion in restructuring costs, including roughly $150 million for separation benefits and $850 million for closures and lease exits.
• More than 1,000 coffeehouses will be renovated to add seating and warmer designs, and the company says it plans to return to net store growth in fiscal 2026.
• The actions advance CEO Brian Niccol’s Back to Starbucks plan after an earlier round of 1,100 corporate layoffs and continued traffic and sales pressure.