<div id="readability-page-1"><div>A little more than one year ago, Brian Niccol waslured to Starbucks from Chipotle Mexican Grill with a $100 million pay package. Niccol took over as CEO and has beenimplementing a turnaround plan aimed at restoring Starbucks's mojo and convincing the public that $6 for a Grande Caffè Latte is a good deal. On Thursday morning, the next chapter of that turnaround was revealed: a restructuring plan that includes cutting 900 employees and closing certain stores as part of the company's &#34;Back to Starbucks&#34; strategy.In an 8-K filing, Starbucks revealed that its Boardhas approved a restructuring plan under its&#34;Back to Starbucks&#34; strategy, which includes the closure of some coffeehouses that lack a clear path to meeting brand standards or achievingfinancial performance. Most of these closures are expected to be completed by the end of the year.Starbucks is also restructuring its corporate structure to focus more directly on coffeehouses and customers. These total restructuring costs will amount to $1 billion, with90% of the costs tied to North American operations.Niccol provided additional details on the restructuring in his letter to shareholders.Here's a breakdown of that:<blockquote>Coffeehouse Portfolio Review:<ul><li>Locations unable to meet brand standards or financial goals will be closed.</li><li>Net effect: ~1% decline in company-operated stores in North America in FY2025, leaving ~18,300 U.S. and Canadian locations (operated + licensed). </li><li>FY2026: growth expected as new stores open. Over the next 12 months, 1,000+ stores will be &#34;uplifted&#34; with upgraded designs.</li><li>Impacted employees will be offered transfers where possible; severance will be provided otherwise.</li></ul>Non-Retail Role Reductions: <ul><li>Starbucks will cut ~900 non-retail jobs and close many open positions.</li><li>Affected staff will receive severance and benefit extensions. </li><li>Non-essential office staff are instructed to work from home during the transition.</li></ul>Investment Priorities: <ul><li>More barista hours and staffing in stores. </li><li>Elevated coffeehouse designs.</li><li>Ongoing innovation and customer service enhancements.</li></ul>Outlook: <ul><li>Early results from &#34;uplifted&#34; stores show higher traffic, longer visits, and improved partner engagement.</li><li>Leadership stressed the difficulty of these decisions but framed them as necessary for long-term growth and resilience.</li></ul></blockquote>&#34;While we're making good progress, there is much more to do to build a better, stronger and more resilient Starbucks. As we approach the beginning of our new fiscal year, I'm sharing two decisions we've made in support of our Back to Starbucks plan. Both are grounded in putting our resources closest to the customer so we can create great coffeehouses, offer world-class customer service and grow the business,&#34;Niccol wrote in the letter.Full Letter:<img height="1032" width="500" src="https://imageproxy.pbkrs.com/https://assets.zerohedge.com/s3fs-public/styles/inline_image_mobile/public/inline-images/2025-09-25_07-39-54.png/query-aXRvaz1YaTZzMFNkVA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://assets.zerohedge.com/s3fs-public/styles/inline_image_mobile/public/inline-images/2025-09-25_07-39-54.png/query-aXRvaz1YaTZzMFNkVA"/>Later this week, Starbucks is expected to report its 4Q25 earnings. In July, the company posted its sixth consecutive quarterly sales decline at stores open for at least a year.Total quarterly revenues have stalled over the last two years.<img height="334" width="500" src="https://imageproxy.pbkrs.com/https://assets.zerohedge.com/s3fs-public/styles/inline_image_mobile/public/inline-images/Snag_498f3bf5.png/query-aXRvaz1pek91c3hPcA?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://assets.zerohedge.com/s3fs-public/styles/inline_image_mobile/public/inline-images/Snag_498f3bf5.png/query-aXRvaz1pek91c3hPcA"/>Shares are down nearly 8% year-to-date and have been trading sideways for the past five years.<img height="274" width="500" src="https://imageproxy.pbkrs.com/https://assets.zerohedge.com/s3fs-public/styles/inline_image_mobile/public/inline-images/Snag_498fc5e6.png/query-aXRvaz0yU1ZSY2xVeQ?x-oss-process=image/auto-orient,1/interlace,1/resize,w_1440,h_1440/quality,q_95/format,jpg" original-src="https://imageproxy.pbkrs.com/https://assets.zerohedge.com/s3fs-public/styles/inline_image_mobile/public/inline-images/Snag_498fc5e6.png/query-aXRvaz0yU1ZSY2xVeQ"/>Hmmm Starbucks...<blockquote>UK Starbucks Employee screams at woman for misgendering him, then proceeds to violently assault a man filming the altercation. pic.twitter.com/6ahMsto49T— Antifa Public Watch official (@UnmaskedAntifa) May 8, 2023</blockquote><blockquote><div dir="ltr" lang="en">I’m convinced Starbucks recruits their employees from Antifa riots.Starbucks inside Kroger 3420 Towne Road Middletown, OH pic.twitter.com/kDeSAVqNSE</div>— ♥️🇺🇸 𝓒𝓪𝓽𝓲𝓪 🇮🇹♥️ (@CB618444) September 23, 2025</blockquote>Niccol, it's time to unleash automation.</div>Loading recommendations...</div>

SBUX

Starbucks CEO Brian Niccol announced a restructuring plan aimed at revitalizing the brand, which includes cutting 900 non-retail jobs and closing underperforming stores. The "Back to Starbucks" strategy will incur $1 billion in costs, primarily in North America, and is expected to result in a 1% decline in company-operated stores in FY2025. The plan focuses on enhancing customer experience and operational efficiency, with an outlook for growth in FY2026. Starbucks has faced six consecutive quarterly sales declines, and shares are down nearly 8% year-to-date.

Starbucks CEO Unveils 900 Job Cuts, Store Closures in Turnaround PushTo Win Back Customers