Starbucks To Close Over 100 Stores And Lay Off 900 Workers In Restructure Plan

The world's largest coffee chain is about to get a tiny bit smaller. Starbucks recently announced plans to close several stores and lay off approximately 900 workers. The company did not specify how many stores will close, but given that it expects to have 124 fewer locations by the end of its fiscal year, many people will suddenly find themselves out of a job.

124 stores out of 18,000 North American locations may not seem like a large percentage, but it's exceptionally rare for Starbucks to end a fiscal year with a net loss of stores. And store closures aren't free, either: The company expects to spend about $150 million on severance and compensation for affected employees and $850 million on exiting leases and other closure costs.

This contraction is part of Starbucks' ongoing revitalization efforts, led by CEO Brian Niccol, commonly referred to in reports as a turnaround expert. Pursuant to that, Starbucks also plans to remodel and modernize over 1,000 stores in the next fiscal year, seeking a welcoming interior space that convinces customers to come back.

2025 has already been a year of major change for Starbucks. Despite ongoing efforts to make stores more welcoming to guests, Starbucks ended its open door policy earlier this year. Previously, people were welcome to use any Starbucks seating area for work, reading, or more for as long as they wanted. Although this is still permitted, you must now buy something first to enjoy the privilege.

On a similar note, Starbucks also brought back free coffee refills, with a twist. You must order your first cup to be enjoyed in-store (as opposed to takeout), and it will be served in a non-disposable mug. It's a transparent attempt to get people to spend more time at Starbucks, while also making sure they buy at least one thing.

Another major turnaround initiative was Starbucks cutting 30% of its menu this year, intending to streamline food and beverage production by removing some less-popular or overly complicated items. Despite all these changes though, Starbucks has continued to struggle with foot traffic and same-store sales, leading to this impending wave of layoffs.