(NewsNation) — Starbucks has announced it is laying off approximately 900 employees and closing 1% of its stores, as part of an effort to address ongoing financial concerns.
The coffee company announced the news in a blog post on Thursday, noting that the changes were part of its “Back to Starbucks” plan. The company said it plans to end the fiscal year with nearly 18,300 Starbucks locations in the U.S. and Canada, which means the closing of 1% of its current locations represents nearly 200 stores.
“During the review, we identified coffeehouses 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, and these locations will be closed,” Brian Niccol, CEO of Starbucks, wrote in the post.
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According to the company, the layoffs will impact 900 current non-retail partner roles and those employees will be notified on Friday. Severance and support packages, including benefits extensions, will be offered.
“Unless your job specifically requires you to be on site in the office, we’re asking you to work from home today and tomorrow,” Niccol said.
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In addition, the company said it will be closing many open positions.
“In fiscal year 2026, we’ll grow the number of coffeehouses we operate as we continue to invest in our business,” Niccol said. “Over the next 12 months, we also plan to uplift more than 1,000 locations to introduce greater texture, warmth, and layered design.”
In recent months, Niccol has put an emphasis on improving customer service and efficiency. Some of these changes have included setting barista goals for making orders in four minutes or less, as well as placing more focus on customers physically in Starbucks locations.
“I know these decisions impact our partners and their families, and we did not make them lightly. I believe these steps are necessary to build a better, stronger, and more resilient Starbucks,” Niccol said.
