Starbucks To Shutter Stores, Cut Jobs Amid Struggles

Starbucks is closing hundreds of cafés and cutting 900 corporate jobs in its latest attempt to revive declining sales. CEO Brian Niccol said the closures, which affect about 1% of its North American stores, follow a review of underperforming locations. The company expects the restructuring to cost $1 billion.

The layoffs come on top of 1,000 corporate job cuts earlier this year. Employees losing their positions will receive severance packages. Shares of Starbucks (SBUX) remain flat despite the announcement.

BREAKING: Starbucks to close undisclosed number of underperforming stores, cut jobs as part of turnaround plan pic.twitter.com/NZY3uQGrgi

— Fox News (@FoxNews) September 25, 2025

Niccol, who took over a year ago, has trimmed the menu, added trendier items, and introduced store remodels. But sales remain weak, with stock down 12% this year. Some of his moves have stirred backlash among baristas, including uniform changes and complicated drink recipes.

Starbucks will close hundreds of stores this month and will lay off staff at its headquarters as the troubled chain continues to strugglehttps://t.co/zmjDYeh8Jg

— CNN (@CNN) September 25, 2025

Starbucks says it aims to emerge stronger with refreshed cafés and a renewed focus on its coffeehouse identity.

Related:

Lawsuits Mount Against Starbucks Over “Tone-Deaf” Uniform Rules

Starbucks is facing lawsuits from employees in Illinois and Colorado over its new dress code policy, with additional complaints filed in California. Workers argue that the company failed to reimburse them for new clothes required under the rules introduced in May, forcing many to spend out of pocket. The lawsuits

tippinsightsTIPP Staff

Also read:

Michelob Ultra Tops U.S. Beer Sales, Surpassing Modelo

Michelob Ultra is now America’s top-selling beer, overtaking Modelo Especial in U.S. retail sales by volume as of September 14, according to Circana data cited by CNN. Anheuser-Busch credited the rise to aggressive marketing, including star endorsements like Lionel Messi and the rollout of Michelob Ultra Zero, its

tippinsightsTIPP Staff