Starbucks Announces Major Staff Cuts

2025-09-28 01:47:22

(MENAFN) Starbucks announced on Thursday plans to reduce its workforce by hundreds and shutter dozens of stores across North America, reflecting ongoing challenges in its business.

The US-based coffee giant revealed that its total company-operated store count in North America is expected to shrink by about 1% in fiscal year 2025.

"We will end the fiscal year with nearly 18,300 total Starbucks locations – company operated and licensed – across the U.S. and Canada," the company stated.

In addition to store closures, Starbucks confirmed it will reduce non-retail headcount and expenses. "This includes the difficult decision to eliminate approximately 900 current non-retail partner roles and close many open positions," the announcement said.

The company emphasized efforts to assist affected employees, noting it will attempt to offer transfers to nearby locations where possible and will act quickly to support staff. For others, Starbucks will provide "comprehensive severance packages."

The moves come as Starbucks grapples with a 2% drop in global sales during the third quarter of the fiscal year, following declines reported in both the first and second quarters.

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