Starbucks is set to lay off employees and close certain stores as part of a $1 billion restructuring plan, according to ABC News.

Starbucks in Disney Springs

CEO Brian Niccol sent a memo to employees on September 25th, advising them of the news.

As part of the restructuring, Starbucks will cut 900 employees in non-retail roles across America. The store closures will result in a roughly 1% decline in the total number of Starbucks stores in North America this fiscal year (this also includes some store openings), CEO Brian Niccol said.

Starbucks at Disney Springs

“While we’re making good progress, there is much more to do to build a better, stronger, and more resilient Starbucks,” Niccol said. After the announcement, Starbucks shares increased slightly in pre-market trading.

Starbucks

Analysts previously told ABC News that Starbucks had been hit with slow sales — due in part to elevated inflation. The company has experienced six consecutive quarters of declining same-store sales, which measures performance at individual store locations over time.

Starbucks has been updating the interior of many of its stores in an attempt to draw more customers and boost sales. Stores where such changes are not achievable will ultimately be closed.

“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 said.

Starbucks

The company is anticipating ending fiscal year 2025 with 18,300 stores across the United States and Canada. Employees will be notified this week if their stores are designated for closure, and Starbucks hopes to relocate them to other stores. Otherwise, Niccol said the company will aim to provide “comprehensive severance.”

Niccol also added, “Each year, we open and close coffeehouses for a variety of reasons, from financial performance to lease expirations. This is a more significant action that we understand will impact partners and customers. Our coffeehouses are centers of the community, and closing any location is difficult.”

It’s unclear if this will impact any stores at Disney World, but we’ll let you know if anything changes.

Newly redesigned Starbucks at Disney Springs

We’ll be on the lookout for additional updates on these Starbucks layoffs and closures. In the meantime, make sure you stay tuned to the Disney Food Blog for the latest news and more.