Starbucks Closes Stores and Lays Off 900 Employees in Restructuring Plan
san francisco, donderdag, 25 september 2025.
Starbucks announces a billion-dollar restructuring plan, under which the chain will close stores and lay off 900 employees. These measures are part of a broader strategy to improve business results and strengthen market position. CEO Brian Niccol emphasises that these steps are necessary to build a stronger and more sustainable Starbucks, although he acknowledges that it is a difficult decision for the affected partners and customers.
Starbucks Closes Stores and Lays Off 900 Employees in Restructuring Plan
Starbucks announces a billion-dollar restructuring plan, under which the chain will close stores and lay off 900 employees. These measures are part of a broader strategy to improve business results and strengthen market position. CEO Brian Niccol emphasises that these steps are necessary to build a stronger and more sustainable Starbucks, although he acknowledges that it is a difficult decision for the affected partners and customers [1][2].
Details of the Restructuring Plan
The Starbucks restructuring plan includes the closure of an unspecified number of stores in North America and the layoff of approximately 900 non-retail employees. These decisions are being made to improve financial performance and enhance customer satisfaction. According to Niccol, the focus will be on strengthening brand identity and creating a warmer and more welcoming atmosphere in the stores [1].
Impact on Employment and Store Network
The layoffs will primarily affect non-retail positions, and the store closures will take place gradually over the coming days. Starbucks expects the number of company-operated stores in North America to decrease by about 1% by the end of fiscal year 2025, to around 18,300 stores [2]. The decision to close stores is based on a thorough evaluation of financial performance and customer satisfaction [1].
Support and Assistance for Affected Employees
Starbucks has promised to support employees whose positions are being eliminated with generous severance packages and other assistance measures. The company recognises the emotional and financial impact of these decisions and is committed to a careful transition for all affected partners [1][2].
Strategic Investments and Future Plans
In addition to the restructuring, Starbucks will invest in the modernisation of more than 1,000 locations over the next 12 months. These improvements will focus on introducing more texture, warmth, and layered design into the stores to enrich the customer experience. Moreover, the company will concentrate on simplifying the menu and implementing operational automation to speed up service [3][4].
Market Reaction and Future Outlook
Starbucks shares (NASDAQ: SBUX) closed yesterday at $84.27, down 1.66% on the day and 10.38% over the past 52 weeks. Although the recent quarterly figures showed an EPS of $0.50, which was $0.14 below estimates, and a 47% decline in net profit compared to the previous year, revenue continued to grow by 3.8% to $9.46 billion. The restructuring has so far incurred costs of $137 million, with the aim of long-term brand revitalisation and efficiency gains [5].