Starbucks Announces Closures Across U.S., Canada, Europe

Starbucks announced it will close hundreds of stores across the U.S., Canada and Europe and lay off about 900 corporate (nonretail) employees as part of CEO Brian Niccol’s roughly $1 billion “Back to Starbucks” turnaround. The company says it expects to finish the fiscal year with about 18,300 North American locations, down from 18,734, and that closures begin immediately at sites it does not see a path to financial stability. Starbucks said affected partners will be offered transfers or severance where possible and plans to invest in and “uplift” roughly 1,000 remaining locations. Analysts estimate the cuts amount to roughly 1% of North American stores this fiscal year, and TD Cowen projects about 500 North American closures in the fiscal fourth quarter. Local outlets have confirmed impacted stores in multiple U.S. markets including Buffalo Grove, Lancaster, Fort Collins, the Bay Area, Cincinnati, Chicago and Fresno. Separately, home-decor retailer At Home has completed most of its Chapter 11–related closures, underscoring broader retail pressures driving footprint reductions and job cuts.