SHOCKWAVE: Starbucks Slashes 900 Jobs, Closes Stores—Is Your Local Coffee Shop Safe?
the staff of the Ridgewood blog
Ridgewood NJ, in a bold and painful move to reboot the coffee giant’s performance, Starbucks CEO Brian Niccol announced Thursday a sweeping corporate restructuring that includes shutting down a number of underperforming U.S. stores, eliminating approximately 900 non-retail positions, and implementing a hiring freeze.
The dramatic cuts are central to Niccol’s “Back to Starbucks” turnaround strategy—a high-stakes effort to reverse slowing sales and intense market competition. The CEO, who is one year into his tenure, confirmed the company is prioritizing its resources to “reinforce what we see is working.”
The Rationale: Closing for a Better Future
The target of the store closures will be locations that are unable to meet customer and employee expectations or are simply not hitting their financial performance goals.
- Store Closures: Affected store employees will receive notification this week, with the company attempting to transfer as many “partners” as possible to nearby, thriving locations. The final number of closures is not yet confirmed, but the company expects its North American store count to see a net decline of around 1% for the fiscal year.
- Corporate Layoffs: Approximately 900 corporate and non-retail staff will learn the status of their roles on Friday. This marks the second significant round of corporate layoffs this year as the company aims to become leaner and more efficient.
The entire restructuring effort is projected to cost Starbucks around $1 billion, primarily covering lease termination costs and severance packages.
A Turnaround “Ahead of Schedule”
Despite the difficult news for employees, Niccol framed the restructuring as a necessary step in a recovery that is already showing positive momentum.
The capital freed up by closing poor performers and streamlining the corporate hierarchy is slated for reinvestment into what the company calls its “uplift” initiative: upgrading and redesigning over 1,000 existing stores to create a warmer, more engaging in-store experience.
The Early Win: Niccol pointed to early results from these newly upgraded locations, where the core strategy is already proving effective. Improved customer engagement has been noted, with patrons reportedly staying longer and providing positive feedback.
The company is signaling that while the immediate future involves tough choices, the long-term plan is to build a more resilient and profitable business focused squarely on the premium coffeehouse experience that defined the brand. Starbucks has confirmed it expects to resume store growth in its next fiscal year (2026).
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Well then I’ll have to drive a little further because I’m not drinking Dunkin’ Donuts.
“Niccol pointed to early results from these newly upgraded locations, where the core strategy is already proving effective. Improved customer engagement has been noted, with patrons reportedly staying longer and providing positive feedback.”
Does this sound familiar?
The former CEO of that company said in substance that he would dump the stock of any restaurant that was doing a redecoration to improve business.
Well then, I won’t have to change my driving at all, since I never drink their horrible, overpriced coffee, served by nasty leftists, and always drink Dunkin’ Donuts.
John suffers from Oppositional Defiance Disorder (ODD).