SEATTLE — Starbucks plans to close an undisclosed number of underperforming coffeehouses in North America and eliminate approximately 900 non-retail positions as part of a broader effort to refocus on customer service and store improvements, the company’s CEO said in a letter to employees.
The decision was announced Thursday by Chairman and Chief Executive Brian Nicco and tied to the company’s “Back to Starbucks” strategy. The company aims to create warmer and welcoming stores while boosting financial performance. The closures target locations where the company cannot meet customer expectations for the physical environment or achieve viable financial results.
“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,” Niccol wrote in the letter.
Starbucks has not specified which locations will close or whether any in Florida are targeted, though Indian River County has four stores in Vero Beach, including one inside the Target store.
Starbucks, which operates and licenses nearly 18,300 locations across the U.S. and Canada, expects its overall company-operated store count in North America to decline by about 1% in fiscal year 2025 after accounting for both planned openings and closures.
The company anticipates growth in its store count during fiscal year 2026 and plans to renovate more than 1,000 locations over the next 12 months to add “greater texture, warmth, and layered design,” Niccol said.
Affected store employees, referred to by Starbucks as “partners,” will be notified this week and offered transfers to nearby locations where possible. Those unable to be reassigned will receive severance packages, with the company expressing hope to rehire many in the future as new stores open.
The job cuts, which also include closing many open non-retail positions, are intended to redirect resources toward front-line store operations, including more hours for baristas and innovations in store design and customer service. Non-retail employees impacted by the reductions were notified Friday, with severance and benefits extensions provided.
Niccol asked most non-retail staff not required onsite to work from home last week.
“These steps are to reinforce what we see is working and prioritize our resources against them,” Niccol wrote, citing early positive results from store upgrades, such as increased customer visits and improved sales where additional staffing has been added.
The Seattle-based coffee giant has been under pressure to revitalize its business amid competition and shifting consumer habits. Niccol, who took over as CEO earlier this year, emphasized that the decisions were difficult but necessary to build a “better, stronger, and more resilient Starbucks.”
