Starbucks to shut stores amid $1 billion restructuring plan

Starbucks has approved a sweeping restructuring plan that will close underperforming coffee houses across North America and eliminate approximately 900 corporate positions as the chain seeks to revitalize declining sales and profits.

CEO Brian Niccol's message to employees revealed on Thursday, September 25, 2025: "We're unable to create the physical environment our customers and partners expect, or where we don't see a path to financial performance.”

The Seattle-based company's strategic review identified locations of stores for closures and job reductions primarily affecting North American operations as part of a broader $1 billion operational overhaul.

Niccol stated the company's focus on creating inviting coffeehouse environments with ceramic mugs, comfortable seating, and improved service speed.

The restructuring represents the latest effort under Niccol's leadership to address operational challenges that have impacted recent financial performance.

Starbucks expects to incur approximately $1 billion in costs related to the restructuring initiative, according to regulatory filings.

The announcement follows similar cost-cutting measures across the retail and restaurant industry as companies adapt to changing consumer patterns and economic pressures.

The coffee-maker plans to notify affected employees on Friday, September 26, 2025 and has asked corporate staff to work remotely during the transition period.

Industry analysts suggest the restructuring reflects broader challenges facing brick-and-mortar retailers and the intensified competition in the premium coffee market.