Layoffs going into the fourth quarter, Starbucks (NASDAQ: SBUX) to close stores, cut 900 jobs

Starbucks Corporation (NASDAQ: SBUX) announced a restructuring plan involving coffeehouse closures and organizational changes as part of its “Back to Starbucks” strategy, according to a company statement.

The Seattle-based coffee chain expects to incur approximately $1 billion in restructuring costs, with 90% attributed to its North America business. The company anticipates completing a majority of store closures by the end of this fiscal year.

The restructuring charges include an estimated $150 million for employee separation benefits, $400 million for disposal and impairment of company-operated store assets, and $450 million primarily for accelerated amortization of lease assets and other lease costs. The company projects $400 million in non-cash charges and $600 million in future cash expenditures.

Chief Executive Officer Brian Niccol stated in an internal memo that the company will eliminate approximately 900 non-retail partner roles and close many open positions. Partners at affected coffeehouses will receive transfer opportunities to nearby locations where possible, with comprehensive severance packages for those who cannot be immediately placed.

Despite the closures, Starbucks expects its overall company-operated count in North America to decline by about 1% in fiscal year 2025 after accounting for both openings and closures. The company will end the fiscal year with nearly 18,300 total Starbucks locations across the United States and Canada, including both company-operated and licensed stores.