Starbucks to lay off employees, shut down stores

Affected employees will be notified on Friday morning, and will be provided with severance and support packages, including benefits extensions.

“To those partners who will be leaving, I want to say a profound thank you. To those continuing on our turnaround journey, I deeply appreciate your commitment to helping us get back to Starbucks.”

Starbucks store closures

Meanwhile, Niccol also announced that some Starbucks stores will be shuttered after a careful review of their portfolio.

“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,” he said.

The company had 18,734 stores in North America at the end of June. According to the CEO, these stores will decline by about one per cent in fiscal year 2025 after accounting for both store openings and closures.