Starbucks Corporation (NASDAQ:SBUX) announced on Thursday that the board approved a restructuring plan involving the closure of coffeehouses and the further transformation of the company’s support organization. The changes were noted to be part of the “Back to Starbucks” strategy initiated by CEO Brian Niccol.
“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,” Niccol stated in a letter to employees. Starbucks (NASDAQ:SBUX) also plans to cut about 900 jobs in its support teams and close many open positions.
The Seattle-based company estimates that it will incur approximately $1 billion related to the store closures, support organization transformation, and other restructuring activities, with 90% of the expenses attributable to the North America business.
Starbucks (SBUX) said it will end the fiscal year with nearly 18,300 total Starbucks locations (company operated and licensed) across the U.S. and Canada. In fiscal year 2026, Starbucks (SBUX) plans to grow the number of coffeehouses it operates as it continues to invest in the business.
Shares of Starbucks (SBUX) were down 0.2% in premarket trading. The restaurant stock is down 7.7% on a year-to-date basis.