MYNORTHWEST NEWS

Starbucks to close stores, lay off 900 workers as part of turnaround plan

Sep 25, 2025, 5:40 AM

starbucks lay off close stores...

Shoppers at the Walden Galleria stop by a Starbucks kiosk. (Photo: Gene J. Puskar, The Associated Press)

(Photo: Gene J. Puskar, The Associated Press)

Starbucks is laying off around 900 non-retail employees and closing some U.S. and Canadian stores as it focuses more of its resources on a turnaround.

The Seattle coffee giant will notify employees whose positions are being eliminated early Friday and said that it plans to close an undetermined number of stores in North America in the coming days.

A review of Starbucks locations revealed that many are falling short of financial performance targets or are failing to create the environment customers expect, according to a letter sent by Starbucks CEO Brian Niccol on Thursday.

“Each year, we open and close coffeehouses for a variety of reasons, from financial performance to lease expirations,” Niccol wrote. “This is a more significant action that we understand will impact partners and customers. Our coffeehouses are centers of the community, and closing any location is difficult.”

Starbucks said Thursday that it expects to end its fiscal year with 18,300 stores in North America, down 124 from last year.

It’s rare for Starbucks to shrink its store count during a fiscal year.

Niccol is a turnaround specialist who was brought into Starbucks a year ago this month to give the brand a jolt. Under Niccol’s leadership, the struggling Chipotle chain, where Niccol was CEO for about 6 years, essentially doubled its revenue and its profit, and stock price, soared.

Starbucks said it will offer severance and support packages for affected employees.

MyNorthwest News

wa insurance rate hike...

RANJI SINHA, KIRO 7

WA Insurance Commission approves major rate hike for residents; average 22% increase for 2027

Washington state residents who purchase individual health insurance face an average 22.2% rate increase starting in 2027.

1 hour ago

mariners rick rizzs retire...

Manda Factor

‘I’m going to be a wreck’: Mariners broadcaster Rick Rizzs reflects on last road trip before retirement

The voice of the Seattle Mariners, Rick Rizzs, left this week for what will be the final road series of his broadcasting career that began 52 years ago.

2 hours ago

Wedding anniversary September 11...

Frank Lenzi

‘It just felt right’: Puget Sound Fire couple celebrates wedding anniversary every September 11th

While many of us are reflecting on the tragic events of 9/11, some are also celebrating milestones, such as a birthday or a wedding anniversary.

3 hours ago

Seattle jose rizal park gun...

Jason Sutich

Seattle police investigating report of armed man near Jose Rizal Park in Beacon Hill

Seattle police are currently investigating a report of a man near Jose Rizal Park who is believed to be armed with a gun.

3 hours ago

Mountlake Terrace girls search...

KIRO 7 News Staff

Police search for man accused of touching two girls near Mountlake Terrace High School

Police in Mountlake Terrace are warning the public about a man who grabbed two girls inappropriately near the high school.

3 hours ago

washington state fair food puyallup fair...

Katerina Wearn, 425 Magazine

A food lover’s guide to the Washington State Fair

Everyone already knows about the second stomach reserved for dessert, but the Washington State Fair might have you wishing for a third, or even fourth.

4 hours ago

Starbucks to close stores, lay off 900 workers as part of turnaround plan