Starbucks has announced a $1 billion restructuring plan that will see the company close stores and eliminate 900 jobs by the end of 2025. The move, which reduces the coffee chain’s North American footprint by about 1 percent, comes as CEO Brian Niccol works to reset the business after six consecutive quarters of same-store sales declines.

The company said its total North American store count will fall to 18,300 by the close of the fiscal year. While the job cuts will affect corporate and support functions rather than baristas, Starbucks confirmed it will attempt to place employees from closing stores into new locations. Those who cannot be reassigned will receive severance packages, with the company emphasising that it hopes to rehire many of them once new outlets open.

Niccol, who took over in 2024 after leading Chipotle, has outlined a “Back to Starbucks” turnaround plan that centres on redesigning stores, improving operations, and elevating the customer experience. He acknowledged the closures are difficult but argued they are part of the fine-tuning needed to improve performance.

“Our goal is for every coffeehouse to deliver a warm and welcoming space with a great atmosphere and a seat for every occasion,” Niccol wrote in a letter posted on the Starbucks website. “During the review, we identified coffeehouses where we’re unable to create the physical environment our customers and partners expect, or where we don’t see a path to financial performance, and these locations will be closed.”

Starbucks has also been clear that union status was not a factor in deciding which stores would shut down. The restructuring supports Niccol’s broader ambition to reignite growth, with plans to expand again in 2026 and eventually reach 100,000 stores worldwide.

Despite the near-term cuts, Starbucks maintains that the shake-up will put the company on stronger footing for the future.