Starbucks has confirmed it will close a number of stores across Canada and the United States and eliminate approximately 900 non-retail roles, in what company leadership is calling a “significant action” to strengthen long-term growth and operational standards.
Starbucks Chair and CEO Brian Niccol explained that the decision is driven by two main factors: certain locations cannot meet the physical environment standards expected by customers and staff, and some outlets lack a sustainable path to financial performance. “While we close and open stores each year, this is a more significant action,” said Niccol. “Our coffee houses are centres of the community and closing any location is difficult. These changes are necessary to ensure we invest in the right places for the future of our partners and our customers.”
At the end of the fiscal year, Starbucks expects to operate nearly 18,300 stores across North America. After factoring in both closures and openings, the company anticipates a net reduction of about 1 per cent in its total store footprint. Despite this adjustment, Starbucks reaffirmed its plans to expand over the long term.
The company emphasized that it is committed to supporting affected employees, known internally as “partners.” Where possible, staff will be transferred to nearby stores. Those unable to be reassigned will receive severance packages. The 900 non-retail employees impacted by the restructuring have been notified, with the company pledging to prioritize future rehiring opportunities as new stores open. “I know these decisions impact our partners and their families and we did not make them lightly,” Niccol added.
Looking ahead to fiscal 2026, Starbucks said more than 1,000 existing stores will be upgraded with enhanced design features to offer “greater texture, warmth, and layered design.” The company also expects to launch new outlets to offset the closures, creating fresh opportunities for employees and reinforcing its brand presence.
Starbucks Canada has not yet confirmed which Canadian stores will be affected or the timeline for closures. Employees and customers across the country remain awaiting further updates.
The move underscores the retail coffee industry’s challenges in balancing financial performance, customer expectations, and community presence. While closures and layoffs mark a difficult moment, Starbucks maintains that its strategy is focused on reinvestment, brand renewal, and long-term expansion.