Starbucks to close hundreds of stores, lay off thousands

Business Oct 05, 2025

Starbucks is rolling out a restructuring plan, which means hundreds of underperforming company-run stores will close and thousands of employees will be let go.
After six straight quarters of falling sales, the company says this move is all about making operations leaner and putting more focus (and investment) into a better customer experience.

Severance packages offered

Only company-operated locations are affected. The company is offering severance packages and possible rehiring when new cafes open.

Seattle Reserve Roastery will also shut down

The Seattle Reserve Roastery—a flagship spot known for its immersive coffee experiences—is among the closures.
It's a sign that Starbucks is shifting gears, moving from rapid expansion toward tighter financial discipline.