Starbucks Corporation is embarking on a $1 billion restructuring drive that will see the coffee giant eliminate about 900 non-retail positions and shut down select company-owned outlets across North America.
Chief Executive Officer Brian Niccol, in a memo to employees on Thursday, September 25, 2025, said the restructuring is intended to strengthen the company’s long-term performance and address operational challenges.
He clarified that the cuts will apply to corporate and support roles, leaving baristas and frontline store employees unaffected.
The closures will affect stores identified as underperforming or unable to provide the kind of experience expected by customers and staff.
Starbucks confirmed that licensed outlets run by franchise partners will not be part of the exercise.
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The $1 billion plan will cover severance pay, lease termination, and other related costs.
The company said displaced employees would be offered severance benefits, health coverage extensions, and potential opportunities for reassignment or relocation.
Following the restructuring, Starbucks expects the total number of its North American outlets to shrink by roughly one percent in fiscal year 2025, once closures and new store openings are factored in.
Market observers view the move as part of the Seattle-based company’s efforts to streamline operations in the face of rising costs, shifting consumer spending, and intensifying competition in the global coffee market.