Starbucks is closing about 250 North American cafes this week to cut costs and improve store returns. It said the closures will incur about $300 million in restructuring charges and aims to transfer baristas from closing stores, with severance for those who leave.
An earlier restructuring plan approved by Starbucks’ board in September 2025 authorized cafe closures and a transformation of the support organization under its “Back to Starbucks” strategy. It estimated about $1 billion in total charges, with 90% tied to North America: roughly $150 million in employee separation benefits, $400 million for disposal and impairment of store assets, and $450 million in accelerated lease costs from closing stores before their leases ended.
Separately, Starbucks reported 11,149 company-owned and operated stores across North America in late June, about 300 fewer than a year earlier. It cut about 2,000 corporate roles in the prior year, dismissed more than 200 corporate staff in August, and eliminated another 300 U.S. positions earlier this year. CEO Brian Niccol has set a goal of cutting $2 billion in costs by the end of fiscal 2028, the Wall Street Journal reported.
