A few days ago, we reported that Starbucks employees in three states had announced they were suing the company over its dress code, which took effect in May.
What's that draconian dress code, you ask? Well, Starbucks required employees to "wear a solid black shirt and khaki, black or blue denim bottoms. Shirts can be short- or long-sleeved and collared or collarless." Starbucks even said it would give each employee two free shirts.
That wasn't good enough, and baristas everywhere protested having to meet a basic minimum corporate standard.
Today, Starbucks announced it's closing several stores and laying off 900 workers.
Coffee giant Starbucks will lay off workers and close stores as part of a $1 billion restructuring plan, CEO Brian Niccol said in a memo to employees Thursday.
— ABC News (@ABC) September 25, 2025
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Here's more from ABC News:
Coffee giant Starbucks will lay off workers and close stores as part of a $1 billion restructuring plan, CEO Brian Niccol said in a memo to employees on Thursday.
The company will slash 900 employees in non-retail roles across North America, Niccol said. The store closures will amount to a roughly 1% decline in the total number of Starbucks locations in North America in this fiscal year, after accounting for some store openings, Niccol added.
"While we’re making good progress, there is much more to do to build a better, stronger, and more resilient Starbucks," Niccol said.
Shares of Starbucks ticked slightly higher in pre-market trading after the announcement early Thursday morning.
The news caused Starbucks stock to drop 1% on Thursday.
The letter from Niccol also said, "Each year, we open and close coffeehouses for a variety of reasons, from financial performance to lease expirations. 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 has not announced which locations would be closed yet.
The coffee giant has just under 17,000 locations in the US with about 210,000 employees. It also has 34 million active members in its rewards club. The $1 billion restructuring plan means Starbucks hopes to have just over 18,000 stores combined in the US and Canada.
The Associated Press reported that Starbucks planned to use consistent criteria for store closures, stating that union membership wouldn't be a factor in determining which locations close.
Editor's Note: President Trump is leading America into the "Golden Age" as Democrats try desperately to stop it.
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