Starbucks has announced plans to shut underperforming coffeehouses and cut around 900 corporate roles in North America as part of its “Back to Starbucks” restructuring plan.

In a message to employees, chief executive Brian Niccol confirmed that a review of the company’s North America coffeehouse portfolio had identified underperforming sites that will now be closed.

The move will reduce Starbucks’ company-operated store count in the region by around 1% in fiscal year 2025, leaving nearly 18,300 outlets across the US and Canada.

“Closing any location is difficult,” Niccol said, adding that employees affected by store closures would be offered transfers to nearby sites where possible. For those unable to be redeployed, the company will provide severance packages and support.

At the same time, Starbucks will cut approximately 900 non-retail roles and close many currently open positions as it works to reduce overheads.

The redundancies will mainly affect corporate and support functions, and affected staff will be notified immediately and offered severance and benefits extensions.

The company emphasised that the measures are designed to redirect resources toward frontline staff, known internally as “green apron partners,” and to fund investments in store refurbishments, service and design.

Starbucks plans to upgrade more than 1,000 stores over the next year, introducing new layouts and designs aimed at encouraging customers to stay longer.

Despite the closures and job losses, the company said it expects to return to net growth in store numbers in fiscal year 2026 as it continues to expand its presence across North America.

“These steps are necessary to build a better, stronger and more resilient Starbucks,” the Niccol said.