Starbucks to Cut 900 Jobs and Close Underperforming Stores in US and UK
Starbucks has announced plans to eliminate around 900 jobs in the United States and shut down a number of its worst-performing stores, including some in the UK, as part of a major cost-cutting and restructuring initiative aimed at boosting sales and improving customer experience.
The Seattle-based coffee giant said most closures will take place in North America, while some locations in the UK, Switzerland, and Austria will also be affected. The move comes just months after Starbucks cut 1,100 US jobs in February and simplified its menu to address declining sales in its home market.
Chief Executive Officer Brian Niccol, who joined Starbucks last year after leading Chipotle Mexican Grill, described the decision as a significant step in the company’s turnaround strategy.
“This is a more significant action that we understand will impact partners and customers,” Niccol said in a letter to employees. He explained that the stores chosen for closure either failed to meet the company’s operational and customer service standards or lacked a clear path to financial viability.
While some stores are shutting down, Starbucks confirmed it remains committed to expansion, with plans to open 80 new stores in the UK and 150 across Europe, the Middle East, and Africa (EMEA) by the end of the financial year.
The 900 job cuts will primarily affect support staff roles in the US.
The restructuring follows six consecutive quarters of declining US same-store sales, with the latest figures released in July showing a deepening slump. Starbucks shares have fallen by more than 8% in 2025, adding pressure on Niccol to reverse the trend.
As part of his turnaround plan, Niccol has introduced changes such as remodeled store layouts, revamped seating areas, and the return of self-service condiment bars, in a bid to improve customer experience and reduce wait times.
However, Starbucks continues to face stiff competition from emerging drive-through coffee chains and other rivals, with analysts at TD Cowen noting a deteriorating brand perception among US consumers.
The company is also grappling with a growing unionization movement among its US workforce. Workers United, which represents employees at more than 600 company-owned stores, criticized the restructuring move, saying it highlights a lack of communication between Starbucks management and baristas.
“Yet again, we’re experiencing new policies and major decisions being made with zero barista input,” the union said in a statement, adding that it will formally request details about the planned closures.
Despite the turbulence, Starbucks insists the restructuring will streamline operations, helping the company adapt to changing consumer habits and better compete in a crowded coffee market.
