CLOSURES: Starbucks to close stores, cut 900 jobs in Canada and U.S.

Amid declining sales, Starbucks plans to close stores and cut 900 jobs in Canada and the U.S.

Several hundred, or one per cent of cafes across Canada and the U.S. are expected to close by the end of the 2025 fiscal year, Brian Niccol, Starbucks chairman and chief executive officer, posted on the company’s website.

During a review, Starbucks identified coffeehouses where they either “don’t see a path to financial performance” or are unable to “deliver a warm and welcoming space” — these locations will be closed, Niccol said.

Staff members in coffeehouses scheduled to close will be notified this week, he added. The company will try to offer transfers to nearby locations where possible.

The company will end the fiscal year with nearly 18,300 total Starbucks locations – company-operated and licensed – across the U.S. and Canada.

Over the next 12 months, Starbucks plans to “uplift more than 1,000 locations to introduce greater texture, warmth, and layered design.”

In addition to closing stores, the company plans to eliminate approximately 900 non-coffeehouse jobs. They will also close many open positions.

Non-retail staff were to be notified on Friday morning. Niccol said they will offer generous severance and support packages, including benefits extensions.

“I know these decisions impact our partners and their families, and we did not make them lightly,” Niccol said in the post. ” I believe these steps are necessary to build a better, stronger, and more resilient Starbucks that deepens its impact on the world and creates more opportunities for our partners, suppliers, and the communities we serve.”

Lead photo: H&CO