Starbucks to lay off 900 employees, close stores in $1 billion restructuring plan

Starbucks announced Thursday that it will lay off 900 employees and close some stores as part of its $1 billion restructuring plan.

The number of stores in North America will decline by about 1% in fiscal year 2025, accounting for both openings and closures, according to Starbucks' SEC filing, CNBC reported.

The company estimates that 90% of the expected $1 billion restructuring cost will be attributable to the North America business, and that a significant portion of expenses will be incurred in fiscal year 2025.

In the filing, Starbucks said it is prioritizing investment “closer to the coffeehouse and the customer.”

This is the second round of layoffs under CEO Brian Niccol, after 1,100 corporate workers were let go earlier this year.

“These steps are to reinforce what we see is working and prioritize our resources against them,” Niccol wrote in a letter to employees on Thursday. “I believe 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.”

Niccol also said that Starbucks had reviewed and identified stores where the company would be “unable to create the physical environment our customers and partners expect, or where we don’t see a path to financial performance.”

The CEO also made changes to the company's operations, including a return to four days in the office, starting next month.