Starbucks to cut 900 corporate jobs, close underperforming stores in US$1B restructuring plan 

USA – Starbucks announced a major restructuring plan aimed at revitalizing its business, including cutting 900 non-retail jobs and closing underperforming locations. 

The plan, outlined in a letter from CEO Brian Niccol to employees, is part of a US$1 billion cost-management initiative designed to streamline operations and reinvest in store-level improvements.  

Employees affected by the cuts will be notified on September 26, with severance packages and benefits extensions offered. 

This move follows the elimination of 1,100 positions earlier in the year, as Starbucks seeks to sharpen its focus on long-term growth. Niccol said the company will use the cost savings to hire more customer service employees and invest in new coffeehouse designs and innovations. 

In the same letter, Niccol confirmed that all corporate employees, including support partners and people managers, must work from the office at least four days a week starting September 29. 

Starbucks has been grappling with ongoing sales challenges. In its most recent quarterly earnings, the company reported its sixth consecutive drop in U.S. same-store sales, down 2%, driven by a 4% decline in comparable transactions. While the results met Wall Street expectations, they underscored the need for further action to stabilize performance. 

The company now plans to trim its store count by roughly 1% across Canada and the U.S., reflecting a mix of closures and new openings. By year-end, Starbucks expects to operate approximately 18,300 company-operated and licensed stores in North America, down from 18,842 locations in Q3. 

“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 wrote. 

Despite the closures, Starbucks is also planning significant reinvestment. The company will invest in 1,000 locations over the next 12 months to enhance the coffeehouse atmosphere, moving away from pick-up-focused formats. 

Additionally, Starbucks intends to carry out small-scale renovations, spending about US$150,000 per store to restore seating removed in recent years. For new builds, costs have been cut by approximately 30%, with a new stand-alone prototype—featuring 32 seats and a drive-through—set to launch in fiscal 2026. 

Niccol emphasized that these initiatives are designed to strengthen Starbucks’ long-term growth and customer experience. 

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