Starbucks launches major overhaul with store closures, job cuts

Anabelle Colaco
27 Sep 2025, 22:33 GMT+10

Starbucks is shutting down underperforming cafes and cutting jobs as part of a sweeping restructuring aimed at restoring sales growth and profitability under new CEO Brian Niccol
The coffee chain said on September 25 it would close U.S. and Canadian stores that cannot meet financial goals or deliver the refreshed coffeehouse experience the company is trying to bring back
The move comes as Niccol, who took over earlier this year, rolls out changes designed to emphasize comfort, service, and ambiance, including features such as ceramic mugs, more seating, and shorter wait times

SEATTLE, Washington: Starbucks is shutting down underperforming cafes and cutting jobs as part of a sweeping restructuring aimed at restoring sales growth and profitability under new CEO Brian Niccol.

The coffee chain said on September 25 it would close U.S. and Canadian stores that cannot meet financial goals or deliver the refreshed coffeehouse experience the company is trying to bring back. The move comes as Niccol, who took over earlier this year, rolls out changes designed to emphasize comfort, service, and ambiance, including features such as ceramic mugs, more seating, and shorter wait times.

"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 said in a letter to employees.

Alongside the closures, Starbucks will eliminate about 900 corporate support roles and cancel many open positions, according to the CEO.

The company expects the restructuring to cost roughly US$1 billion, it said in a regulatory filing.

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