Headline Roundup • October 1st, 2025
Starbucks to Close Hundreds of US Stores, Cut 900 Corporate Jobs
Summary from the AllSides News Team
Starbucks announced it is closing underperforming stores in the US, and laying off hundreds of employees as part of a $1 billion restructuring plan to boost sales and improve customer experience.
The Details: Starbucks CEO Brian Niccol said the company expects its North American store count to decline by about 1%—roughly 430 to 520 stores—by the end of fiscal 2025, leaving nearly 18,300 company-operated and licensed locations across the US and Canada. It’s also eliminating approximately 900 current non-retail partner roles and closing many open positions. The total number of employees laid off from closed locations has not yet been reported. Niccol also said the company plans to renovate over 1,000 stores over the next 12 months to “introduce greater texture, warmth, and layered design.” Starbucks has experienced six consecutive quarters of declining US sales.
For Context: This is the second round of layoffs since Niccol became CEO a year ago. In February, Starbucks announced the elimination of 1,100 jobs, and a simplification of its US menu to address slowing sales. In December, several Starbucks unionized employees–representing over 10,000 baristas–staged walkouts across multiple US cities, citing ongoing disputes over pay, staffing levels, and work schedules.
How the Media Covered It: The New York Post (Lean Right) covered the closure of 54 stores in New York City, characterizing it as “chaotic.” It quoted landlords, including one who said, “There was no warning, no heads up.” Fast Company (Lean Left) quoted Starbucks Workers United, which said 59 of those closing locations are unionized. It included a quote from a Starbucks spokesperson who told amNY that unionization “was not a factor” in the decision to close specific locations. BBC (Center) highlighted the impact on Starbucks’ international stores. It quoted a spokesperson saying, "While the EMEA [Europe, Middle East and Africa] business is on track to meet its commitment to open 80 new stores in the UK and 150 across EMEA this financial year, some stores in the UK, Switzerland and Austria will close as a result of this portfolio review.”
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Featured Coverage of this Story
Starbucks has said it will cut about 900 US jobs and close its worst performing stores there, as well as shutting some UK stores as part of a cost-saving move.
Most of the stores earmarked for closure are in North America and its chief executive said the revamp would reduce wait times and help revive sales.
Starbucks’ surprise plans to close dozens of stores across New York City are claiming dozens of high-profile locations — and sparking chaos for employees, city officials and landlords alike, The Post has learned.
Ronaldo Schemidt/AFP via Getty Images
On the heels of Starbucks’s recent announcement that it will be cutting 900 corporate roles and closing 1% of its North American stores by the end of 2025 (after accounting for both new openings and closures), Starbucks Workers United said Tuesday that 59 of those locations marked for closure are unionized.
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