Starbucks will close about 1% of its locations in the United States and North America and cut about 900 jobs as part of its Back to Starbucks transformation strategy, CEO Brian Niccol told employees Thursday, Sept. 25.
The Seattle-based coffee giant did not provide a list of closing locations. However, the company will have about 18,300 coffee shops when its fiscal year closes at the end of this month, down from 18,734, according to its most recent quarterly earnings release. That means Starbucks will have about 430 fewer locations in the United States and Canada than it did as of June 29, 2025.
The specialty coffee chain will close specific locations "where we’re unable to create the physical environment our customers and partners expect, or where we don’t see a path to financial performance," Niccol said in the memo sent to employees and posted on the Starbucks blog.
Employees at closing locations will be notified this week and will be eligible for transfer to nearby locations, he said.
The reduction in 900 "current non-retail partner roles" is part of the company's goal to "build toward a better Starbucks," Niccol said. Those whose jobs are being eliminated will be notified Friday morning, Sept. 26, he said. "We will offer generous severance and support packages including benefits extensions."
