Starbucks to Close 250 North American Stores in Major Restructuring Move
Starbucks announces second wave of store closures, citing financial underperformance and customer experience goals. CEO Niccol's strategy sparks union concerns.
POLICY WIRE — New York, United States — Starbucks has announced the closure of 250 stores across North America, marking the second major round of store reductions under new CEO Brian Niccol. The move comes as part of a broader strategy to streamline operations and focus on locations that deliver strong financial performance and customer experiences.
The company cited financial underperformance and the need to maintain high standards for both customers and employees as key reasons for the closures. While specific locations were not disclosed, the decision follows a similar round of store closings last September, when Starbucks shuttered 627 stores in North America and Europe and laid off 900 non-retail employees.
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Starbucks COO Mike Grams emphasized the company’s commitment to improving its store experience through retrofits, with 1,500 locations expected to be renovated by the end of the fiscal year. However, the closures have raised concerns among unionized workers, as more than 700 U.S. Starbucks stores have voted to unionize since 2021. The company has not reached a labor agreement with union representatives, and the impact of these closures on affected employees remains unclear.
Reporting by Policy-Wire (PW)
