Starbucks revealed a $1 billion restructuring plan, including closing some North American coffeehouses and laying off more workers as part of its “Back to Starbucks” transformation under CEO Brian Niccol. With a decline of about 1% in company-operated stores in North America in fiscal year 2025, along with the estimated 500 gross closures, the company is aiming to prioritize resources for a stronger future.

Niccol emphasized the need for these steps to reinforce what is working and build a more resilient Starbucks that deepens its impact on the world. The company plans to focus on investment closer to the coffeehouse and customer experience, in a bid to reverse a sales slump in its largest market. By ending fiscal year 2025 with nearly 18,300 North American locations and a focus on customer service, Starbucks is taking bold steps towards growth and sustainability in the face of increased competition and changing consumer expectations.