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Starbucks is making headlines again, and this time it is not for a new latte or colorful seasonal cup design. Starbucks has announced that it will be closing hundreds of locations across North America while also letting go of more than 900 corporate employees, a move that CEO Brian Niccol says is critical to saving the struggling coffee giant. For fans of the brand, it is a jarring reminder that even the most iconic cafés can hit tough times.
The news broke with an announcement that Starbucks will shutter about 1 percent of its stores by the end of this month. With 18,734 locations reported in June, that means more than 400 cafés will soon be gone. When September closes, the number will shrink to roughly 18,300. On top of that, the company is carrying out its second major round of layoffs this year, following an earlier cut of 1,000 jobs in February.
Why Starbucks is Closing Stores
In a letter to employees, Niccol explained that this is not a routine pruning of underperforming shops. Starbucks regularly closes locations for business reasons, but this action is much larger in scope. He admitted that some locations simply cannot create the experience that customers expect or do not show a clear path toward profitability.
“This is a more significant action,” Niccol said, acknowledging that closing stores hurts both partners and customers. The brand has always prided itself on being a community gathering spot, and losing local cafés strikes an emotional chord with loyal regulars. Still, Niccol insists these tough steps are necessary if Starbucks wants to remain competitive and regain its strength in the long term.
The Cost of Reinvention
Restructuring on this scale is not cheap. Starbucks expects the closures, layoffs, and other adjustments to cost the company about $1 billion. Investors are watching closely. Shares of Starbucks remained flat in premarket trading, but the brand is under pressure to show that these moves will set up a rebound.
It is not all bad news, though. Starbucks also plans to remodel more than 1,000 locations, signaling that it is not shrinking for the sake of retreat but rather trying to make its cafés more inviting. The refreshed stores will include cozier chairs, more power outlets for laptop users, and warmer design touches. In other words, the company is aiming to recapture the cozy coffeehouse vibe that drew customers in the first place.
Layoffs Hit Headquarters
Beyond the cafés, Starbucks headquarters is facing painful cuts. The company announced another 900 layoffs on top of the earlier 1,000, bringing the total to nearly 2,000 corporate positions lost in 2025. Niccol wrote that affected employees would receive severance and support, but he acknowledged the human cost.
“I know these decisions impact our partners and their families, and we did not make them lightly,” he explained. “I believe these steps are necessary to build a better, stronger and more resilient Starbucks that deepens its impact on the world and creates more opportunities for our partners, suppliers and the communities we serve.”
A CEO Under Pressure
Niccol took the helm at Starbucks about a year ago, bringing with him a track record of bold moves at other food chains. But the turnaround has been rocky. Despite cutting the menu by 30 percent and introducing trendy new items like protein toppings and coconut water, the brand has struggled to regain momentum. Sales have not recovered, and the stock is down around 12 percent since he arrived.
Some changes have resonated. Customers have responded positively to new baked goods, such as flaky croissants, and small touches like bringing back self-serve milk and sugar stations. Even playful doodles on coffee cups were meant to give the brand a more personal feel. But other changes sparked friction with baristas, including controversial uniform requirements and overly complicated drinks that slowed down service during peak hours.
Starbucks and Its Identity Crisis
One of the boldest changes was renaming the company to Starbucks Coffee Company to emphasize its roots. That decision was meant to remind customers that, at its core, Starbucks is about coffee. But balancing heritage with innovation has been tricky. The chain has to keep pace with fast-moving rivals like Dunkin’ and independent cafés while also maintaining its global dominance.
The closures and layoffs may look grim, but Starbucks insists they are part of a long-term plan to get back to basics, streamline operations, and rebuild customer trust. Remodeling stores with cozy chairs and warmer colors is one step in that process. If successful, Starbucks could emerge from this chapter stronger and more resilient.
What This Means for Customers
For everyday fans, the immediate impact will be the disappearance of some local cafés and possible disruptions in service. Loyal customers who considered Starbucks their neighborhood coffeehouse may need to find a new spot. Others may welcome the remodels, enjoying a refreshed environment that feels more comfortable and community-driven.
Meanwhile, layoffs at headquarters will not directly impact customers but could shift the way the company handles new menu items, promotions, and digital ordering. If Starbucks gets leaner and more focused, fans may eventually see improvements in quality and service.
Bringing Starbucks Home
While the closures are unsettling, fans do not have to miss out on their Starbucks favorites. For those who enjoy experimenting in the kitchen, this is a great time to try making your own versions of beloved drinks and treats. FoodsWild already has recipes that scratch that itch, such as the Copycat Starbucks Iced Pecan Crunch Oatmilk Latte or a cozy Copycat Starbucks Pumpkin Spice Whiskey Barrel-Aged Cold Brew. Both bring the seasonal magic of Starbucks right into your kitchen, no matter what is happening at your local café.
Trying out these copycat recipes is also a way to connect with the brand during a time of change. Even if the Starbucks down the street is closing, you can still sip a homemade latte and feel like you are part of the community. Plus, experimenting at home gives you the freedom to tweak sweetness, milk choices, and toppings exactly the way you like them.
Starbucks is in the middle of one of its most dramatic shake-ups in years. With hundreds of store closures, nearly 2,000 layoffs, and a billion dollars invested in restructuring, the brand is betting big on its future. Whether it succeeds will depend on how customers react to remodeled cafés, simplified menus, and renewed focus on coffee culture.
For now, the closures may feel like a loss for communities that counted on Starbucks as a local gathering place. But the brand’s willingness to take risks could also pave the way for a more authentic and customer-focused future. And in the meantime, fans have plenty of copycat recipes to keep the Starbucks experience alive at home. Because at the end of the day, coffee is not just about caffeine it is about comfort, routine, and connection. And that is something Starbucks can never afford to lose.
