Starbucks to lay off 900 workers, close some US and Canada stores
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Starbucks said Thursday that it expects to end its fiscal year with 18,300 stores in North America, down 124 from last year.

WASHINGTON — Starbucks is planning to cut approximately 900 non-store-based positions and will also shut down a few outlets in the U.S. and Canada as part of its effort to reallocate resources towards revitalizing the company.

The Seattle-based coffee company intends to inform employees who are affected by the job cuts on Friday morning. Additionally, the company will proceed with closing several store locations in North America in the near future, although the exact number has not been specified.

According to a message from Starbucks CEO Brian Niccol on Thursday, a recent evaluation revealed that numerous stores are not meeting financial targets or providing the experience that customers anticipate.

Niccol explained, “Each year, we assess our coffeehouses for various reasons, such as financial outcomes and lease expirations. This is a more significant initiative that we acknowledge will affect our partners and patrons. Our coffeehouses are central to the community, so shutting any is a tough decision.”

Starbucks said Thursday that it expects to end its fiscal year with 18,300 stores in North America, down 124 from last year.

It’s rare for Starbucks to shrink its store count during a fiscal year.

Niccol, who joined Starbucks a year ago this month, is recognized for his expertise in organizational recovery. He previously led the turnaround at the struggling Chipotle chain, where during his six-year tenure, he substantially increased its revenue and profit, causing the stock price to surge.

Starbucks said it will offer severance and support packages for affected employees.

Copyright 2025 Associated Press. All rights reserved. This material may not be published, broadcast, rewritten, or redistributed.     

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