Starbucks said Thursday it's closing hundreds of stores in the U.S., Canada and Europe and laying off 900 nonretail employees as it focuses more of its resources on a turnaround.
The Seattle coffee giant said store closures would start immediately. Starbucks said affected baristas will be offered severance packages and transfers to other locations where possible.
The company wouldn't give a number of stores that are closing, but the bulk of the closures appear to be in the U.S. and Canada. Starbucks said it expects to have 18,300 North American locations when its fiscal year ends on Sunday. As of June 29, the company had 18,734 locations.
In a research note Thursday, TD Cowen analyst Andrew Charles estimated Starbucks will close around 500 North American stores in its fiscal fourth quarter.
In a letter to employees in Europe, Starbucks Chairman and CEO Brian Niccol said some locations in the U.K., Austria and Switzerland will also be closing. Starbucks didn't say how many stores will be impacted on those nations, either.
Starbucks said it will notify nonretail employees whose positions are being eliminated early Friday. Starbucks asked employees who can work from home to do so on Thursday and Friday.
In a letter sent to employees Thursday, Niccol said a review of the company's stores identified locations where the company doesn't see a path to financial stability or isn't able to create the physical environment customers expect. Those stores are being closed.
“Each year, we open and close coffeehouses for a variety of reasons, from financial performance to lease expirations,” Niccol wrote. “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.”
Starbucks said it expects to spend $1 billion on the restructuring, including $150 million on employee separation benefits and $850 million related to the physical store closing and the cost of exiting leases.
Starbucks shares fell 1% Thursday.
It was not immediately clear how many of the stores that are closing are unionized. Workers at 650 company-owned U.S. Starbucks stores have voted to unionize since 2021, but they have yet to reach a contract agreement with the company.
Starbucks Workers United, the labor group organizing workers, said Thursday that the closures were made without input from Starbucks' baristas. The union said it intends to engage in bargaining at every union-represented store that is closing to ensure workers can be placed at another store they prefer.
“Fixing what’s broken at Starbucks isn’t possible without centering the people who engage with the company’s customers day in and day out,” the union said.
News of the store closures arrived just over a week after unionized employees in three states sued Starbucks over its new dress code, saying the company refused to reimburse workers who had to buy new clothes.
Starbucks said it used a consistent set of criteria to determine the stores that are closing and union representation wasn't a factor.
Starbucks will end its 2025 fiscal year with 124 fewer North American stores than its previous fiscal year. It’s rare for Starbucks to shrink its store count during a fiscal year.
Starbucks plans to increase its North American store count in its next fiscal year, Niccol said. The company said it also plans to redesign more than 1,000 locations in the next 12 months to give them a warmer, more welcoming feel.
This is the second round of layoffs at Starbucks this year. In February, Niccol announced the layoffs of 1,100 corporate employees globally and eliminated several hundred open positions. At the time, Niccol said Starbucks needed to operate more efficiently and increase accountability for decisions.
Niccol is a turnaround specialist who was brought into Starbucks a year ago this month to give the brand a jolt. Under Niccol's leadership, the struggling Chipotle chain, where Niccol was CEO for about 6 years, essentially doubled its revenue and its profit, and its stock price, soared.
In July, Starbucks reported its sixth straight quarter of lower same-store sales, as weak U.S. traffic continued to be a drain on the company. Niccol is trying to turn that around by adding staff, making stores cozier and introducing software that helps prioritize orders and make sure customers can get their drink within four minutes.
FILE - Shoppers at the Walden Galleria in Buffalo, NY, stop by the Starbucks kiosk on Saturday, Nov. 30, 2024. (AP Photo/Gene J. Puskar, File)
NAKHON RATCHASIMA, Thailand (AP) — A construction crane collapsed onto an elevated road near Bangkok, killing two people on Thursday, a day after another crane fell on a moving passenger train in northeastern Thailand and killed 32 people.
The work on an extension of the Rama 2 Road expressway — a major artery leading from Bangkok — has become notorious for construction accidents, some of them fatal.
The crane collapsed at part of the road project in Samut Sakhon province, trapping two vehicles in the wreckage, according to the government’s Public Relations Department.
Transport Minister Phiphat Ratchakitprakarn said on Thai TV Channel 7 that two people had died. It was unclear if anyone else had been trapped in the wreckage.
There was uncertainty about the number of victims because the site is still considered too dangerous for search teams to enter, said Suchart Tongteng, a rescue worker with the Ruamkatanyu Foundation.
“At this moment, we still can’t say whether another collapse could happen,” he said, citing dangling steel plates. “That’s why there are no rescue personnel inside the scene, only teams conducting on-site safety assessments.”
At the site of Wednesday's train derailment, the search for survivors ended, Nakhon Ratchasima Gov. Anuphong Suksomnit said. Three passengers listed as missing were presumed to have gotten off the train earlier, but that was still being investigated.
Officials believed 171 people had been aboard the train’s three carriages, which were being removed from the scene Thursday.
The crane that fell, crushing part of the train, was a launching gantry crane, a mobile piece of equipment often used in building elevated roadways.
Police were still collecting evidence and interviewing witnesses and have not pressed charges, provincial Police Chief Narongsak Promta told reporters.
South Korea's Foreign Ministry reported a South Korean man in his late 30s, was among the dead.
The high-speed rail project where the accident occurred is associated with the plan to connect China with Southeast Asia under Beijing’s Belt and Road Initiative.
In August 2024, a railway tunnel on the planned route, also in Nakhon Ratchasima, collapsed, killing three workers.
Anan Phonimdaeng, acting governor of the State Railway of Thailand, said the project’s contractor is Italian-Thai Development, with a Chinese company responsible for design and construction supervision.
A statement posted on the website of the company, also known as Italthai, expressed condolences to the victims and said the company would pay compensation to the families of the dead and hospitalization expenses for the injured.
Transport Minister Phiphat said Italthai was also the lead contractor on the highway project where Thursday's accident took place, though several other companies are also involved.
The rail accident had already sparked outrage because Italthai was also the co-lead contractor for the State Audit Building in Bangkok that collapsed during construction last March during a major earthquake centered in Myanmar. The building's collapse was the worst quake damage in Thailand and about 100 people were killed.
Twenty-three individuals and companies have been indicted, including Italthai's president and the local director for the company China Railway No. 10, the project’s joint venture partner. The charges in the case include professional negligence and document forgery, and Thailand's Department of Special Investigation has recommended more indictments.
The involvement of Chinese companies in both projects has also drawn attention, as has Italthai and Chinese companies’ involvement in the construction of several expressway extensions in and around Bangkok where several accidents, some fatal, have occurred.
In Beijing, Chinese Foreign Ministry spokesperson Mao Ning said Wednesday the government was aware of the rail accident and had expressed condolences.
Associated Press writers Wasamon Audjarint in Bangkok and Hyung-jin Kim in Seoul, South Korea, contributed to this report.
Relatives of victims and others wait at a hospital, a day after a construction crane fell into a passenger train in Nakhon Ratchasima province, Thailand, Thursday, Jan. 15, 2026. (AP Photo/Sakchai Lalit)
Relatives wait at a hospital to receive bodies of victims, a day after a construction crane fell into a passenger train in Nakhon Ratchasima province, Thailand, Thursday, Jan.15, 2026. (AP Photo/Sakchai Lalit)
Forensic workers inspect the site of a train accident, a day after a construction crane fell into a passenger train in Nakhon Ratchasima province, Thailand, Thursday, Jan. 15, 2026. (AP Photo/Sakchai Lalit)
A cuddly toy lies on the ground at the site of a train accident, a day after a construction crane fell into a passenger train in Nakhon Ratchasima province, Thailand, Thursday, Jan. 15, 2026. (AP Photo/Sakchai Lalit)
A construction crane that collapsed on the Rama 2 Road elevated expressway in Samut Sakhon province, Thailand on Thursday, Jan. 15, 2026. (AP Photo/Arnun Chonmahatrakool)
A construction crane that collapsed on the Rama 2 Road elevated expressway in Samut Sakhon province, Thailand on Thursday, Jan. 15, 2026. (AP Photo/Arnun Chonmahatrakool)
A construction crane that collapsed on the Rama 2 Road elevated expressway in Samut Sakhon province, Thailand on Thursday, Jan. 15, 2026. (AP Photo/Arnun Chonmahatrakool)
