Starbucks will lay off about 900 employees and close over 100 stores. Here’s what to know.

Starbucks is closing over 100 stores in addition to sweeping layoffs as the coffee chain seeks to boost profits and revive sales under CEO Brian Niccol.

The company has been creating substantial changes in recent months at the behest of Niccol, former Chipotle CEO, who took over the company in 2024 and launched the “Back to Starbucks” plan. Niccol has vowed to bring back a “warm and welcoming” coffeehouse environment with the return of ceramic mugs, comfortable seating and reduced wait times, but the plan has led to store closures and left employees jobless.

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Here’s what to know.

Starbucks is closing 1% of its underperforming stores across the US, Starbucks CEO Brian Niccol said Thursday, Sept. 25. Starbucks did not provide a list of which locations would close; however, with 1% expected to close, that means 150 to 200 will likely shutter.

Once stores close, the company is estimated to have around 18,300 Starbucks coffee houses across the U.S. and Canada. The company recently announced it would close 80 to 90 “Pick Up” stores in more than 20 states, including Pennsylvania.

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Starbucks CEO Brian Niccol said Thursday, Sept. 25, the company approved a restructuring plan to close 1% of its underperforming coffee houses in the US. In a letter to employees, Niccol said the locations were chosen because the company was “unable to create the physical environment our customers and partners expect, or where we don’t see a path to financial performance.”

Starbucks is also cutting about 900 jobs in its support teams (non-retail positions) and will close many open positions, CEO Brian Niccol said. Those employees will be laid off Friday, the company said.

In February, Niccol announced the layoff of 1,100 employees, and halted hiring for hundreds of open positions.

The Starbucks CEO is Brian Niccol, 51, who joined the coffee chain on Sept. 9, 2024. Niccol, a Philadelphia native, previously had successful turnarounds at Taco Bell and Chipotle, where he also served as CEO. When he took the helm, Niccol revealed a turnaround plan called “Back to Starbucks,” which includes anything from how baristas should dress, to new ordering systems, menu changes and more.