Starbucks Plans 100 North America Store Closures, 900 Layoffs With $1B Cost

Starbucks is closing about 1% of its North American stores, over 100 locations including its Capitol Hill Roastery, and laying off approximately 900 non-retail employees as part of CEO Brian Niccol's "Back to Starbucks" strategy aimed at revitalizing the brand. The closures have prompted customer disappointment, but Starbucks is offering a special perk to affected customers such as bonus stars in the Starbucks app. For laid-off retail employees including baristas, shift supervisors, and café attendants, Starbucks has detailed severance packages: baristas receive 60 hours of pay, shift supervisors 84 hours, and café attendants 30 hours, with additional lump sum payments covering three months of health insurance premiums under COBRA. Employees have 45 days to sign a release agreement to receive severance benefits, and some states will pay out accrued vacation hours. Starbucks emphasized efforts to offer transfer opportunities to impacted workers and expressed gratitude for the communities built around the stores being closed. These moves come amid the company’s aim to ensure all stores provide a welcoming environment and maintain financial viability.