Starbucks is Closing 250 Stores in North America
Wanjiru Waweru, Jadetimes Contributor
W. Waweru is a Jadetimes News Reporter Covering America & Business News
Starbucks made an announcement and is looking forward to close 250 North American stores.
It is the second big round of store closures under Starbucks Chairman and CEO Brian Niccol, who joined the company in 2024. Last September, Starbucks permanently closed 627 stores in North America and Europe, and laid off 900 non-retail employees.
In a letter to employees, Starbucks Chief Operating Officer Mike Grams explained the location targets, the financial consequences, and the form of experience Starbucks wants to provide for customers and employees.
The company did not explain on Thursday, September 24, which coffeehouses would shut down or how many stores across the United States. It did not confirm how many of the impacted coffeehouses are unionized. Over 700 U.S. Starbucks stores have voted to unionize since late 2021; however, Starbucks does not help the unionization effort, and the union and the company have yet to reach a labor agreement.
Grams explained that Starbucks is addressing the overhaul of its North American coffeehouses to make them cozier and more inviting. The company is predicting that 1,500 stores would be upgraded by September 30, which is the end of Starbucks’ fiscal year.
“This progress has given us a clearer view of the performance of every coffeehouse,” said Grams. “While most are benefiting from this overall momentum, some coffeehouses continue to underperform despite the hard work and commitment of all of you.”
Grams explained that Starbucks continues to commit to increasing its store count in North America.
Starbucks explained that it would transfer employees to other stores if necessary or give severance help if an employee is not eligible to be transferred to another location.
In May, Starbucks laid off an extended corporate employee and closed some U.S. offices. The company decreased by less than 1% in premarket trading.
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