Starbucks Closes 250 North American Stores in Turnaround Push
Starbucks is closing 250 underperforming North American cafes and laying off corporate staff as part of CEO Brian Niccol's Back to Starbucks restructuring strategy.
Starbucks Coffee Company is closing approximately 250 company-operated and licensed stores across North America, representing about 1% of its regional footprint. The closures, which began in late September 2026, target locations that failed to meet financial performance standards or consistently deliver the desired customer experience. The company expects to incur roughly $300 million in restructuring charges, including $200 million for lease exits and severance.
This move is a central component of CEO Brian Niccol's Back to Starbucks turnaround strategy, which aims to reduce annual costs by $2 billion by 2028. To balance the closures, the company is investing $1 billion to remodel up to 9,000 locations, with 1,500 store uplifts targeted by the end of September. Starbucks is also implementing the Green Apron Service program to improve barista-customer interactions and has reduced most U.S. order wait times to under four minutes.
Beyond store closures, the company is laying off over 200 corporate staff in technology and design roles, following a previous cut of 1,200 non-retail employees. The company has lowered its fiscal 2026 net new store opening forecast to 440, shifting growth focus toward international markets. While the company offered transfers and severance, the United Steelworkers union condemned the move, and some employees reported receiving as little as one to three days' notice before layoffs.
