Starbucks CEO Brian Niccol addresses store managers and company leaders from across the country, at the Thomas & Mack Center on the campus of the University of Nevada, during Leadership Experience 2025 in Las Vegas, Nevada, on June 10, 2025.
A new Starbucks at Cathedral Cove Center in Cathedral City, Calif., on Sept. 15, 2025.

Starbucks will close about 1% of its locations in the U.S. and North America and cut about 900 jobs as part of its Back to Starbucks transformation strategy, CEO Brian Niccol told employees Thursday, Sept. 25.

The Seattle-based coffee giant did not provide a list of closing locations. However, the company will have about 18,300 coffee shops when its fiscal year closes at the end of this month, down from 18,734, according to its most recent quarterly earnings release. That means Starbucks will have about 430 fewer locations in the U.S. and Canada than it did as of June 29, 2025.

The specialty coffee chain will close specific locations "where we’re unable to create the physical environment our customers and partners expect, or where we don’t see a path to financial performance," Niccol said in the memo sent to employees and posted on the Starbucks blog.

Employees at closing locations will be notified this week and will be eligible for transfer to nearby locations, he said.

The reduction in 900 "current non-retail partner roles" is part of the company's goal to "build toward a better Starbucks," Niccol said. Those whose jobs are being eliminated will be notified Friday morning, Sept. 26, he said. "We will offer generous severance and support packages including benefits extensions."

Any Starbucks employee whose job requires them to be "on site in the office, we’re asking you to work from home today and tomorrow," Niccol said.

Starbucks cutting jobs, closing some low-performing locations

The moves are part of the "Back to Starbucks" strategy, instituted by Niccol, the former Chipotle CEO who left to become Starbucks' chief executive in September 2024.

"We’re investing in green apron partner hours, more partners in stores, exceptional customer service, elevated coffeehouse designs, and innovation to create the future," he said in the memo. "We will continue to carefully manage costs and stay focused on the key areas that drive long-term growth."

During Niccol's tenure, Starbucks has opened new locations – and upgraded many current coffeehouses – to have a more comfortable environment with additional seating, adding power outlets and offering free coffee refills. The company plans to "uplift more than 1,000 locations to introduce greater texture, warmth, and layered design," Niccol said.

The company recently announced it would close 80 to 90 Starbucks "Pick Up" stores in more than 20 states. Those locations were "exclusively designed for mobile orders and quick pick up without the wait," the company said at the time.

"These steps are to reinforce what we see is working and prioritize our resources against them," Niccol said in the memo. "Early results from coffeehouse uplifts show customers visiting more often, staying longer, and sharing positive feedback. Where we’ve invested in more green apron partner hours so that there are more partners working at busy times, we saw improvements in transactions, sales, and service times, alongside happier, more engaged partners."

How many Starbucks locations will close?

Starbucks will have about 430 fewer locations in the U.S. and Canada by the end of September, according to Niccol's comments and the company's financial filings. Starbucks had 18,734 U.S. and Canadian coffee shops as of June 29, 2025, according to its third-quarter 2025 earnings release.

As of Oct. 1, the company will have nearly 18,300 Starbucks coffeehouses in the U.S. and Canada, including company-operated and licensed locations, Niccol said in a Sept. 25 memo. "In fiscal year 2026, we’ll grow the number of coffeehouses we operate as we continue to invest in our business," he said.

Back in May, about 1,200 Starbucks workers went on strike to protest a new dress code policy. More recently, three employees filed class-action lawsuits in Illinois and Colorado charging the company with allegedly refusing to reimburse them for expenses to meet the new dress code.

Starbucks Workers United, which represents 12,000 baristas across 45 states and DC, said it would formally request information about the planned closures in a statement issued after Niccol's memo was released. "We expect to engage in effects bargaining for every impacted union store, as we have done elsewhere, so workers can be placed in another Starbucks store according to their preferences," the union said.

Starbucks shares were down slightly in midday trading on Sept. 25 and are down about 7% so far this year. The company posted a 3.8% revenue gain in its most recent quarterly earnings report, with $9.5 billion in the three-month period ending June 29, compared to $9.1 billion in the same quarter a year ago.

The company, which had 17,230 stores in the U.S. at the time, said North American comparable store sales declined 2% from the previous year.

This story has been updated with new information.

Contributing: USA TODAY's Amaris Encinas and Michelle Del Rey

Mike Snider is a national trending news reporter for USA TODAY. You can follow him on Threads, Bluesky, X and email him at mikegsnider & @mikegsnider.bsky.social & @mikesnider & msnider@usatoday.com

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This article originally appeared on USA TODAY: Starbucks closing hundreds of locations, cutting 900 jobs as turnaround continues

Reporting by Mike Snider, USA TODAY / USA TODAY

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