Starbucks to close 250 North American stores amid restructuring

Starbucks is closing approximately 250 underperforming stores across North America as part of its ‘Back to Starbucks’ turnaround strategy led by CEO Brian Niccol. The company expects to incur roughly $300 million in restructuring charges related to these closures, which include lease exits and employee severance. The move targets locations that fail to meet financial performance standards or cannot provide the desired customer and employee experience.

This contraction follows previous rounds of significant cuts, including the closure of over 600 stores last year and recent reductions in corporate staff. While North American operations are shrinking, the company is expanding its technological footprint in India. Starbucks is establishing a Global Capability Centre in Chennai, which is expected to create approximately 800 technology jobs to support global business operations.

Impacted employees in North America will be offered transfers to other locations where possible, with severance support provided to those who cannot be accommodated. The closures affect roughly 1% of the company’s total North American footprint.