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Starbucks to Close Underperforming Stores, Cut 900 Corporate Jobs in $1 Billion Reset

The 'Back to Starbucks' overhaul shifts resources to in-store experience after consecutive U.S. sales declines.

Overview

  • Closures of underperforming company-operated cafés in North America begin immediately, resulting in a net 1% reduction to about 18,300 locations by fiscal year end.
  • Approximately 900 non-retail roles will be eliminated, with affected corporate employees to be notified Friday as the company also closes many open positions.
  • Starbucks projects roughly $1 billion in restructuring costs, including about $150 million for separation benefits and $850 million tied to store closings and lease exits.
  • Impacted store employees will be offered transfers where feasible or severance, as the company prioritizes more partner hours and plans renovations at more than 1,000 locations.
  • Starbucks Workers United plans effects bargaining for union stores and local reports note closures already posted, including Seattle’s Pike Place Reserve Roastery.