Starbucks plans to cut 900 non-retail partner roles and reduce its North America store network by about 1 per cent as part of its strategy for the new fiscal year.

In a letter sent to partners, chairman and CEO Brian Niccol said the decisions are in support of the company’s ‘Back to Starbucks’ plan, designed to create great coffeehouses, improve customer service, and grow the business.

Niccol said the company is further reducing non-retail headcount and expenses, which includes the “difficult decision” to eliminate approximately 900 current non-retail partner roles and close many open positions. 

Those affected by the job cuts are to be notified on Friday and will be offered severance and support packages including benefits extensions. 

Regarding store network, Starbucks conducted a review of its North America coffeehouse portfolio earlier this year and has decided to close stores that were “unable to create the physical environment customers and partners expect”, or underperformed financially. 

The company expects to end the fiscal year with nearly 18,300 locations – including both company-operated and licensed – across the US and Canada. Overall, company-operated count in the region will decline by about 1 per cent after accounting for both openings and closures. 

In Seattle, the chain’s hometown, the closure will affect its roastery on Capitol Hill and the Starbucks Reserve in SoDo.

“In FY26, we’ll grow the number of coffeehouses we operate as we continue to invest in our business. Over the next 12 months, we also plan to uplift more than 1000 locations to introduce greater texture, warmth, and layered design,” Niccol said.

Partners in coffeehouses scheduled to close will be notified this week. The company will let them know what opportunities might be available or provide comprehensive severance packages. 

“As we build toward a better Starbucks, we’re investing in green apron partner hours, more partners in stores, exceptional customer service, elevated coffeehouse designs, and innovation to create the future. 

“We will continue to carefully manage costs and stay focused on the key areas that drive long-term growth,” Niccol said.

In the third quarter, the coffee chain saw a 2 per cent decline in global comparable store sales, driven by weakening foot traffic in North America, its largest market.