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with greater texture, warmth, and layered design, indicating that some closures are about cutting underperforming or outdated units while reinvesting in promising sites.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…
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