Starbucks Announces $1 Billion Restructuring Plan

Starbucks' "Back to Starbucks" transformation plan, led by CEO Brian Niccol, involves a comprehensive review of its North American coffeehouse portfolio. Locations unable to deliver the expected physical environment or demonstrate a path to financial performance will be closed. While the number of company-operated stores in North America will decline by about 1% in fiscal year 2025, Starbucks plans to uplift over 1,000 locations to introduce greater texture, warmth, and layered design. This restructuring also includes reducing non-retail headcount and expenses to ensure resources are prioritized effectively. The company is investing heavily in green apron partner hours, more partners in stores, exceptional customer service, elevated coffeehouse designs, and innovation to create the future.

To streamline operations, prioritize investments closer to the customer, and improve overall efficiency.

Approximately 900 non-retail partner roles will be eliminated.

Starbucks will work to offer transfers to nearby locations where possible and provide comprehensive severance packages for those who cannot be immediately placed.

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