Starbucks $1B Restructuring Cuts 900 Jobs, Closes 1% Stores

Starbucks CEO Brian Niccol announced a $1 billion “Back to Starbucks” restructuring that will close roughly 1% of North American stores and eliminate about 900 non‑retail corporate roles to cut costs and refocus on the store experience. Management said the charges include about $450 million for lease exits and roughly $150 million for employee‑related costs, and that affected partners will be offered transfers where possible along with severance and benefits extensions; employee notifications are scheduled later this week. The company cited six consecutive quarters of U.S. same‑store sales declines and a return‑to‑office mandate among pressures prompting the move. Starbucks said savings will be reinvested in stores — adding partner hours and staffing and funding uplifts targeted at more than 1,000 locations — and that some weaker UK, Swiss and Austrian company‑operated sites will be reviewed for closure even as other EMEA markets may still see new openings. The restructuring follows earlier rounds of layoffs and is intended to prioritize profitable formats, revive traffic and support long‑term growth.