Starbucks $1B Restructuring Cuts 900 Jobs, 400 Stores

Starbucks announced it will close about 1% of its stores—roughly 400 U.S. locations—and cut about 900 non-retail corporate roles as part of a $1 billion Back to Starbucks restructuring led by CEO Brian Niccol. The company said closures start immediately, will offer transfers where possible or severance, and expects to spend about $150 million on separation benefits and $850 million on store-closing and lease-exit costs. Starbucks is targeting roughly 18,300 North American locations at fiscal year end and said savings will be reinvested in partner hours, store design and service. The company also plans to eliminate pickup-only formats, saying they do not match the desired community gathering experience. Closures and notices have appeared across many markets, including Southern California, Houston, Cincinnati, the Hudson Valley, Boston, Eugene-Springfield, Arkansas, Sacramento/Modesto/Davis and North Texas, while some unionized stores in certain markets (for example, three Houston locations) appear to remain open. Employees and community members criticized the timing and communication of closures, saying some learned of store closings through media or texts, and labor groups faulted management for decisions made without barista input.