Starbucks to cut 900 jobs and shut some North American stores
Starbucks is planning to lay off about 900 workers and close around 100 cafes in North America as part of a $1 billion cost-cutting plan. The goal is to help the company recover after six straight quarters of falling sales.
Earlier this year, Starbucks also cut 1,100 corporate jobs. Along with the new layoffs, the company said it will stop filling many open positions. The job cuts mainly affect staff in office and support roles, not baristas or store workers.
Starbucks will close about 1% of its cafes in North America. The company has been struggling as customers, hit by higher prices from inflation, are buying fewer of its expensive coffees.
CEO Brian Niccol said the changes are meant to focus resources on what works best. In a letter to employees, he said the goal is to build a “stronger and more resilient Starbucks” that benefits staff, suppliers, and communities.
But Starbucks Workers United, a union representing employees, criticized the move. It said the company is “going backwards” and cannot fix its problems without focusing more on the frontline staff who deal with customers every day.
Starbucks said about 90% of its restructuring costs are from its North American business. This includes $150 million for employee layoffs and $850 million for closing stores.
The company also plans to upgrade more than 1,000 stores in the next year to make them look warmer and more welcoming, according to CEO Brian Niccol.
Niccol’s letter did not mention the union activity at Starbucks. So far, over 650 stores in the US have joined unions, and workers are demanding their first contract.
Talks between the union and Starbucks stalled soon after Niccol became CEO last September. In December, workers organized the biggest strike in Starbucks’ history.
Union workers have criticized Niccol’s “Back to Starbucks” changes and warned of more strikes unless the company agrees to a contract. Starbucks says it is committed to fair negotiations.
“These decisions affect our employees and their families, and we did not make them lightly,” Niccol said on Thursday. Starbucks shares fell 1%.
Published: 26th September 2025
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