admin Starbucks is embarking on a major global restructure, closing stores across the US, UK, Switzerland, and Austria after a detailed review of its coffeehouse portfolio. CEO Brian Niccol, who took charge in September 2024, has launched the ‘Back to Starbucks’ strategy, aiming to improve customer service, store design, and overall financial performance.
The closures target locations where Starbucks cannot deliver the expected customer experience or achieve operational goals. In the US, company-operated stores will decline by about one percent this year, leaving roughly 18,300 stores across the US and Canada. Despite this, the company expects to return to net growth in 2026.
Across the UK and wider EMEA region, the company is taking similar steps. Certain underperforming stores will close, yet Starbucks plans to open 80 new UK outlets and 150 across Europe, the Middle East, and Africa. To support employees affected by these changes, the company will offer transfers to other stores, enhanced compensation, and wellbeing packages, showing commitment to its workforce even amid restructuring.
Alongside store closures, Starbucks will cut approximately 900 non-retail jobs in North America. Niccol frames these changes as a way to prioritize frontline staff, upgrade store designs, and enhance customer experiences. Earlier this year, the company simplified its US menu and cut 1,100 jobs to counter declining sales, following six consecutive quarterly drops in same-store performance. Shares have also fallen over eight percent this year.
However, not everyone agrees with the approach. Starbucks Workers United criticized the closures, highlighting overworked baristas and limited staff input. The union plans formal requests for information and bargaining to protect employee placements. They insist that lasting improvements are impossible without centering employees who engage with customers daily.
Starbucks emphasizes that the restructure balances tough closures with expansion, focusing on operational efficiency and customer satisfaction. While short-term challenges may arise, the company hopes its renewed strategy, combined with new store openings and frontline investments, will strengthen its global market position.
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