Starbucks Plans 900 Job Cuts, 200 Store Closures in North America Restructuring

Starbucks is undergoing a significant restructuring under CEO Brian Niccol's "Back to Starbucks" initiative, which includes the closure of approximately 200 stores across the U.S. and Canada, representing about a 1% decline in company-operated locations by the end of fiscal year 2025. Concurrently, the company plans to cut 900 non-retail corporate jobs in a second wave of layoffs following 1,100 cuts earlier in the year, aiming to redirect resources toward improving in-store experiences by adding baristas, speeding up service, and renovating more than 1,000 stores. Niccol, who previously led a successful turnaround at Chipotle, is applying similar strategies at Starbucks, such as streamlining operations, enhancing customer experience, and integrating technology innovations like AI-powered inventory and new point-of-sale systems. Despite these efforts, Starbucks faces challenges including a 12% drop in stock over the past year and ongoing market competition, with the company also outsourcing IT operations to Tata Consultancy Services to stay competitive. On a positive note, Starbucks has upgraded its offerings in select locations, such as at Susquehanna University, where the campus Starbucks now provides full rewards program integration, multiple ordering options including mobile and kiosk, and expanded menu items like nitro cold brew. Overall, Starbucks is focusing on operational efficiency, customer service improvements, and store ambiance enhancement to regain market strength amid evolving consumer preferences.