Starbucks is planning to close around 250 underperforming stores across North America and reduce corporate positions as CEO Brian Niccol continues a broader restructuring programme aimed at simplifying operations and improving profitability.
According to a report by The Wall Street Journal, Starbucks expects to record approximately $300 million in charges associated with the latest store closures.
The closures are part of a wider effort to streamline the coffee chain’s store network and reduce operating costs.
Latest Closures Follow Earlier Store Reductions
The latest programme follows a larger round of closures last year, when Starbucks shut more than 600 locations across North America and Europe.
The company has also been reducing its corporate footprint. Starbucks announced approximately 300 corporate job cuts earlier this year and closed regional support offices in Chicago, Atlanta, Dallas and Burbank.
In August, more than 200 employees were affected by a decision to move selected corporate functions to Nashville. Some employees were given the option to relocate but chose not to move.
Barista Transfers Planned Where Possible
Starbucks has said it intends to move baristas affected by the latest store closures to other nearby locations where positions are available.
Employees who cannot be transferred are expected to receive severance support, according to the company.
The workforce changes form part of a broader cost-reduction programme led by Niccol. Starbucks has set a target of achieving $2 billion in cost reductions by the end of fiscal 2028.
Starbucks Continues Technology Expansion in India
While Starbucks is reducing parts of its North American footprint, the company is expanding its technology capabilities in India.
Starbucks is preparing to establish its first Global Capability Centre (GCC) in Chennai after signing a memorandum of understanding with Guidance Tamil Nadu.
The Chennai centre is expected to create approximately 800 technology jobs and support Starbucks’ global technology and business operations.
The GCC will operate separately from Tata Starbucks, the company’s retail joint venture with Tata Consumer Products. Starbucks has not disclosed the planned investment for the Chennai facility.
Different Workforce Strategies Across Markets
The North American store closures and Chennai technology expansion are separate initiatives, and Starbucks has not indicated that jobs eliminated in North America are being transferred to India.
Together, however, the developments highlight changes in the company’s workforce structure. Starbucks is reducing selected retail and corporate operations in North America while continuing to invest in technology capabilities and specialised centres in other markets.
The restructuring under Niccol therefore involves both cost reduction and investment in areas that Starbucks expects to support its future technology and business operations.
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