Type
Internal restructuring
Country
World
Region
Location of affected unit(s)
Austria, Switzerland, United Kingdom, United States
Sector
Accommodation / Food
56 - Food and beverage service activities
56.3 - Beverage serving activities
56.30 - Beverage serving activities

900 jobs
Number of planned job losses
Job loss
Announcement Date
25 September 2025
Employment effect (start)
25 September 2025
Foreseen end date
31 December 2025

Description

Starbucks, the US-based global coffee chain, has announced plans to cut about 900 jobs worldwide.

The restructuring programme includes store closures and layoffs of non-retail staff as part of a broader turnaround strategy. The chain is to close an unspecified number of stores across Austria, Switzerland, the United Kingdom, and the United States. The closures are expected to affect employees working in underperforming locations. Starbucks declares that it will offer affected baristas severance packages or transfers to other stores where possible.

The restructuring follows a review of store performance and reflects declining sales, rising operating and labour costs, and weaker consumer demand in mature markets. Trade unions have criticised the lack of prior consultation in some cases, and negotiations are expected at unionised locations in line with national regulations. The programme is estimated to cost $1 billion, including employee separation benefits and costs related to store closures.

Starbucks Workers United, representing unionised store employees, criticised the closures for being decided without barista input and plans to negotiate store transitions where closures involve unionised locations.

In February 2025, the chain announced a plan to cut 1,100 employees worldwide, mainly affecting the United States.

Founded in 1971, Starbucks is one of the world’s largest coffeehouse chains, employing 16,000 people globally.


Sources

Citation

Eurofound (2025), Starbucks , Internal restructuring in World, factsheet number 204079, European Restructuring Monitor. Dublin, https://apps.eurofound.europa.eu/restructuring-events/detail/204079.