SEATTLE, October 1, 2025: Starbucks Corporation has announced the elimination of approximately 900 corporate roles and the closure of an undisclosed number of underperforming stores across North America, part of a sweeping operational restructuring aimed at streamlining its U.S. business. The decision, confirmed by the company on September 25, has triggered widespread disruption among employees, many of whom report having received little or no prior notice.
The layoffs impact non-retail corporate positions, including roles at the company’s Seattle headquarters and regional offices. Starbucks stated that the restructuring is designed to refocus resources on key business areas, including store innovation, customer experience, and technology. Affected employees were notified directly, and the layoffs took effect immediately.
Alongside the job cuts, the company is also closing a number of company-operated retail locations. Starbucks said the closures represent approximately one percent of its North American store portfolio. The company did not specify which locations would be affected but noted the decision was based on store performance and long-term sustainability.
Employees at several closed stores said they were caught off guard by the sudden shutdowns. In some cases, staff were informed their locations would close within 48 hours. Company officials stated that support measures have been put in place for impacted workers, including severance packages and options for internal transfers where available.
Starbucks confirms 900 corporate job cuts across North America
Starbucks confirmed that store managers affected by closures may be eligible for up to 26 weeks of severance pay, depending on tenure. Shift supervisors and baristas are eligible for severance equivalent to 84 and 60 hours of pay, respectively. All eligible employees will retain health coverage through the end of October, with an additional three months of COBRA coverage subsidized by the company.
The restructuring is part of what Starbucks has referred to as a “Back to Starbucks” plan, which includes the redesign of more than 1,000 stores and a realignment of operational resources. The company reported that it expects to incur approximately $1 billion in costs related to the initiative. This includes $150 million in severance and other employee-related expenses, as well as lease terminations and other closure costs.
Starbucks has faced slowing U.S. sales over the past several quarters, with recent earnings showing a decline in same-store transactions amid shifting consumer habits. The company has also been contending with inflationary pressures and a more competitive market environment. The decision to close stores and eliminate positions follows a broader review of Starbucks’ business performance in key markets.
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While the company reiterated its long-term commitment to the North American region, it acknowledged that targeted adjustments were necessary to maintain financial discipline and operational efficiency. Starbucks said all affected employees have been provided with documentation outlining their separation benefits and must return signed agreements within 45 days to receive full severance.
The company has also offered outplacement services and additional support resources to assist with the transition. The restructuring follows earlier workforce adjustments made by Starbucks earlier this year and comes as the company continues to invest in drive-thru and digital operations. The total number of Starbucks locations globally exceeds 38,000, with North America representing its largest market segment.
No changes were announced to international operations, and no retail workers outside North America are affected by the current round of closures and layoffs. The company has not released a list of specific store locations scheduled to close. Starbucks stated that decisions are being made on a market-by-market basis in consultation with regional leadership and operations teams. – By Content Syndication Services.