Starbucks has announced a sweeping restructuring plan that will see the closure of select Canadian coffeehouses and the elimination of approximately 900 non-retail jobs across North America, in a move described by CEO Brian Niccol as significant action aimed at “strengthening its core business and enhancing the customer experience. This effort is part of a larger initiative, dubbed the Back to Starbucks plan, as the company reviews its North American locations and pivots its brand for the future.
A Warm and Welcoming Space is Starbucks’ New Direction
In a statement released on the company blog on September 25, 2025, Niccol explained, “Our goal is for every coffeehouse to deliver a warm and welcoming space with a great atmosphere and a seat for every occasion. 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.”
Starbucks has a long-standing practice of routinely opening and closing stores for various reasons—from lease expirations to strategic growth—but according to Niccol, “This is a more significant action that we understand will impact partners and customers. Our coffeehouses are centers of the community, and closing any location is difficult.”
Canadian Locations and Job Cuts
This cutback is expected to reduce the total number of company-operated Starbucks stores in North America by about one percent in fiscal 2025. The company will end the year with nearly 18,300 locations across the U.S. and Canada. At the same time, Starbucks promises to upgrade over 1,000 locations with greater texture, warmth, and layered design, indicating that some closures are about cutting underperforming or outdated units while reinvesting in promising sites.
“As we build toward a better Starbucks, we’re investing in green apron partner hours, more partners in stores, exceptional customer service, elevated coffeehouse designs, and innovation to create the future,” Niccol added.
Employees Impacted a Not Made Lightly
The company refers to employees as partners, and the impact of this decision is not being understated internally. “These decisions impact our partners and their families, and we did not make them lightly,” Niccol said. Partners in closing stores will be notified this week.
In the corporate structure, about 900 non-retail roles will be eliminated. Those affected will be offered “generous severance and support packages including benefits extensions.”
Union Issues and Employment Questions
Starbucks has recently been in the headlines for employee-organized actions addressing uniform requirements, as well as the wider unionization movement in North America. Though closures and restructuring are not uncommon in franchise-heavy industries, the scale and high profile of Starbucks’ move have fueled further debate about the future of retail employment, partner retention, and fairness in corporate decision-making.
Looking Forward to Leadership, Innovation, and Opportunity
Although some partners and customers face disruption, Starbucks’ leadership asserts that these steps are necessary to build a better, stronger, and more resilient Starbucks that deepens its impact on the world and creates more opportunities for our partners, suppliers, and the communities we serve. The company’s commitment to future growth includes new investments in stores, elevated design, more hours for front-line partners, and innovation both on-site and in digital ordering.
Support, Relocation, and Rehiring
Affected employees will receive comprehensive support and, where possible, be transferred into open roles at nearby stores. We hope to rehire as stores open in the future, says Starbucks. The company pledges to uphold its reputation for “exceptional customer service” and continue expanding opportunities as it navigates one of the most substantial restructurings in its recent history.
Conclusion
The restructuring of Starbucks—from targeted closures in Canada to the elimination of 900 non-store roles—signals a brand in transformation, determined to weather economic pressures, deepen community connections, and innovate for the future. Employees, customers, and industry watchers alike will look to see if the “Back to Starbucks” plan achieves its aim of restoring the chain’s reputation as the coffeehouse “center of the community”—or whether this bold move proves to be a double-edged sword for Canada’s café landscape.
