Starbucks plans to lay off approximately 900 employees and shut down more than 100 stores.

Starbucks, the globally recognized coffeehouse chain, is instituting a significant restructuring strategy that entails the closure of over 100 stores and the elimination of approximately 900 jobs. This initiative, spearheaded by Chief Executive Officer Brian Niccol, aims to enhance profitability and rejuvenate sales amid a competitive market landscape.

Having assumed leadership in September 2024 following a storied tenure at Taco Bell and Chipotle, Niccol has embarked on a comprehensive overhaul dubbed the “Back to Starbucks” plan. This strategic initiative emphasizes restoring a “warm and welcoming” ambiance akin to traditional coffeehouses, involving the reintroduction of ceramic mugs and comfortable seating arrangements. However, the ambitious aspiration of revitalizing customer experience has come at a cost, leading to considerable store closures and a rise in employee layoffs.

According to Niccol, Starbucks plans to close approximately 1% of its underperforming locations across the United States. This translates into an estimated 150 to 200 closures that may affect various states, including Pennsylvania. While the company has not publicly released a specific list of locations slated for closure, it has acknowledged the initiative to dismantle around 80 to 90 of its “Pick Up” stores that cater to a rapidly shifting consumer preference for on-the-go coffee service. Following this restructuring, the company will maintain roughly 18,300 outlets throughout the U.S. and Canada.

The decision to close stores is primarily driven by the company’s inability to meet the expectations of its customers regarding the physical environment and to secure a feasible path to financial viability. Niccol’s communication with employees outlined that these closures are a necessary measure to optimize operational performance in struggling locations.

In addition to shutting down various locations, Starbucks is also set to eliminate jobs within its support teams, impacting predominantly non-retail positions. This move marks the continuation of workforce realignment efforts that Niccol had previously initiated in early 2025, which included the layoff of 1,100 employees and a halt on hiring for numerous positions within the company.

Brian Niccol’s approach to the revitalization of Starbucks, while addressing pressing challenges within the company, underscores the complexities faced by major retailers in an evolving market. As Starbucks navigates this transitional phase, its commitment to enhancing customer experience will remain a central focus amidst significant operational changes.

Beyond the immediate operational considerations, these developments at Starbucks also highlight broader trends within the retail sector, wherein businesses are increasingly required to adapt to changing consumer behaviors and preferences. Media News Source provides further insights into these evolving dynamics within iconic brands.