Starbucks Closing 430 North America Stores Cutting 900 Jobs Amid Restructuring

Starbucks is undergoing a significant restructuring plan, closing hundreds of underperforming stores across the United States and Canada, resulting in the elimination of nearly 1,000 jobs. CEO Brian Niccol explained that the closures target locations without a sustainable financial performance or that fail to provide a welcoming customer environment, as part of the "Back to Starbucks" initiative aimed at improving the in-store experience. The company plans to reduce its North American store count by about 1% in 2025, with around 450 stores already closed and a total of 18,300 stores expected by the end of the fiscal year. These closures have sparked backlash from unionized workers, who argue that the move underscores the need for union protections, especially amid ongoing contract negotiations. In New York City, over 50 Starbucks locations were abruptly closed without warning to employees or landlords, raising legal concerns about compliance with the city's Fair Workweek Law and resulting in a letter from city officials demanding Starbucks comply with labor regulations. This restructuring comes amid declining profits and stock value, with Starbucks aiming to balance shareholder returns while investing in long-term growth and enhancing customer service.