Starbucks announces global restructuring, closing underperforming stores
Starbucks announced a restructuring costing about $1bn, including closing underperforming North American stores and cutting jobs.
This summary was written by AI to complete the context; it is not based on a current source.
On 25 September 2025, Starbucks announced a restructuring plan expected to cost about $1bn worldwide. The move was part of chief executive Brian Niccol's effort to revive the coffee chain after a period of weak sales, particularly in its home market.
The plan included closing a number of underperforming stores in North America and cutting jobs, including corporate roles. Starbucks said it would focus on locations that were not meeting expectations or could not deliver a good customer and staff experience, while continuing to open and refurbish others.
The announcement mattered because North America is Starbucks' largest market, and its slowing sales had worried investors. Mr Niccol, who joined in 2024, had been pursuing a turnaround strategy centred on quicker service and a more welcoming café atmosphere. The restructuring signalled a shift from rapid expansion towards a leaner estate, and it forms the backdrop to later decisions on where the company chooses to invest and hire, including in the UK.
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Starbucks UK expansion and youth hiring · 3 updates
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