• Starbucks on Thursday announced it would close some of its corporately owned stores in North America.
• The company will end its fiscal year with nearly 18,300 stores in North America, down from 18,424 in 2024.
• In addition to the store closures, Starbucks announced it will lay off 900 non-retail employees.

Starbucks on Thursday announced it would close 1% of its North American stores in addition to sweeping layoffs.

The closures will target locations where the company has found it is “unable to create the physical environment our customers and partners expect” or where it doesn’t “see a path to financial performance,” according to a statement published by the company.

Starbucks ended its 2024 fiscal year with 18,424 open stores in North America. According to the company’s announcement, it will end fiscal year 2025 — which ends on September 29 — with 18,300 open stores across the continent.

Beginning in fiscal year 2026, the company said it will continue to grow the number of coffeehouses it operates and refurbish more than 1,000 existing locations as it continues to invest in the business.

In addition to the store closures, the company announced that about 900 non-retail employees will be laid off on Friday.

“I believe these steps are necessary to build a better, stronger, and more resilient Starbucks that deepens its impact on the world and creates more opportunities for our partners, suppliers, and the communities we serve,” CEO Brian Niccol said in a statement about the changes.

This is a developing story. Please check back for updates.