Starbucks $1B Restructuring, Many Store Closures

Starbucks unveiled a $1 billion restructuring under CEO Brian Niccol that will close dozens to hundreds of underperforming North American cafes and cut roughly 900 corporate/non‑retail roles. The company expects to end fiscal 2025 with about 18,300 North American locations (roughly a 1% decline) and said it has identified more than 100–200 specific sites—including the Capitol Hill Reserve Roastery—though analysts estimate closures could total as many as ~500 and Starbucks has not released a full list. Affected employees will be notified this week and offered transfers where possible, with severance and support packages for those who cannot be reassigned. Niccol said savings will be reallocated to remodel more than 1,000 stores and to advance the “Back to Starbucks” initiative to improve in‑store experience and service. The move follows earlier layoffs this year, has drawn scrutiny from unions and observers, and Starbucks said select roasteries and flagship locations will remain open as it focuses investment on higher‑performing cafes.