Starbucks has announced major changes to its business, including Starbucks store closures and layoffs, as part of a wider Starbucks restructuring plan. CEO Brian Niccol said the company will close hundreds of cafés this month, equal to about 1% of its North American locations. That means Starbucks will end September with around 18,300 stores, down from 18,734 in June.

The closures will focus on underperforming stores that could not meet customer expectations or financial goals. Starbucks said these decisions are not easy since its cafés are community spaces, but called them necessary for the future of the company.

Along with closures, the company also announced Starbucks layoffs 2025. About 900 corporate employees will lose their jobs, in addition to the 1,000 layoffs earlier this year. Many open positions will also be eliminated. Starbucks said affected workers will receive severance and support packages. This comes as part of a $1 billion effort to restructure operations.

Despite the Starbucks downsizing news, the company plans to remodel over 1,000 stores with warmer designs, more power outlets, and cozier seating. Starbucks also said it is still committed to growth once the restructuring is complete.

Niccol, who became CEO about a year ago, has been trying to revive the brand. Changes so far include simplifying the menu, adding new food options like croissants and baked goods, and introducing trendy items like protein toppings and coconut water. Smaller touches, such as bringing back self-serve milk stations and doodled coffee cups, were also made.

However, not all changes have been popular. Some baristas have complained about complicated new drinks and uniform changes, with one lawsuit filed against the company.

This Starbucks business update shows the chain is making tough choices now in hopes of building a stronger future.