Restructuring: Starbucks announces closing stores and  Layoffs employees

Starbucks is facing one of the most dramatic shake- ups in its recent history,  publicizing the  check of hundreds of stores in North America, including the iconic Starbucks Reserve Roastery in Seattle. This decision, paired with  wide layoffs and a massive restructuring  trouble, marks a turning point for the world’s biggest coffee company as it adapts to shifting  client actions and  profitable headwinds.

Starbucks Unveils Wide-Ranging Store Closures

Starbucks has confirmed that its store count in the U.S. and Canada will decline by 1% by the end of the 2025 fiscal year, meaning more than 180 locations are slated to shut their doors. CEO Brian Niccol placed these “significant actions” within the context of an ongoing turnaround plan, aimed at reviving sales after six consecutive quarters of declining same-store sales. Many of the affected stores were identified as unable to deliver the “physical environment” Starbucks customers have come to expect, or struggled to achieve financial viability.

Restructuring and Layoffs Hit Corporate Teams

Alongside storefront closures, approximately 900 non-retail employees across North America will be laid off as part of a $1 billion restructuring campaign. This follows a previous round of 1,100 job cuts back in February 2025. Starbucks says the majority of restructuring costs—nearly 90%—are related to North America, including employee severance packages and costs tied to the closed leases and asset write-offs. Impacted employees are being notified this week, and where possible, some will be offered opportunities at other company locations.

The Closure of Seattle’s Reserve Roastery

Perhaps the biggest jolt came for Seattleites and coffee enthusiasts worldwide with the sudden closure of the flagship Starbucks Reserve Roastery on Capitol Hill, along with another Reserve store in SoDo. Opened nearly 11 years ago, the Capitol Hill Roastery had become a local landmark and major tourist draw, showcasing high-end brewing equipment and exclusive tasting experiences. The closure notice, posted quietly as boards went up overnight, referred to the move as a difficult but required step in adjusting company priorities and performance.

The Bigger Picture and “Back to Starbucks” Plan

The closures and layoffs are part of Starbucks’ “Back to Starbucks” initiative, an attempt to aggressively refocus on core strengths and customer experiences while steering through inflation and rising competition. The company is also investing in the renovation of over 1,000 locations and is signaling hope for expansion and renewed growth by fiscal year 2026.

Starbucks, Staff, and Communities React

CEO Brian Niccol acknowledged the emotional toll of these changes, writing that “closing any location is difficult,” especially as Starbucks shops often serve as community hubs. The company stresses its commitment to supporting displaced employees and continuing to foster welcoming environments in all remaining stores.

As Starbucks reshapes its North American footprint in 2025, the challenge will be balancing operational efficiency with the brand’s iconic role as a “third place” between home and work—a place customers feel genuinely at home.

Sandeep Raiza

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