Union organizing efforts intensify amid Starbucks North American restructuring
Over 700 Starbucks stores unionized since late 2021 amid company restructuring.
Event / Economy
Starbucks announced closure of 250 North American stores in September 2026 as part of ongoing restructuring under CEO Brian Niccol. The closures follow 627 closures in September 2025 and are attributed to poor financial performance. The company plans to retrofit 1,500 stores by fiscal year end and will incur $300 million in restructuring charges. Labor relations complexity arises from over 700 unionized U.S. stores.
2026-09-25 to 2026-11-02 · UTC publication dates
Coverage begins 25 Sept, 00:06 UTC
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In May 2026, Starbucks laid off an additional 300 corporate employees and closed underused U.S. offices as part of its ongoing restructuring efforts.
Starbucks operates approximately 41,000 coffeehouses worldwide and employs approximately 361,000 to 381,000 people globally.
In September 2025, Starbucks closed 627 stores in North America and Europe and laid off 900 non-retail employees. This was the first major round of closures under Chairman and CEO Brian Niccol, who joined the company in 2024.
Starbucks plans to close 250 stores across North America later this week. The closures represent approximately 1 percent of the company's North American store portfolio. Starbucks Chief Operating Officer Mike Grams stated in a letter to employees that the targeted locations either aren't delivering acceptable financial results or cannot provide the desired customer and employee experience.
As of the end of June 2026, Starbucks had 18,371 stores in the North American region, making it one of the largest coffeehouse chains in the region.
More than 700 U.S. Starbucks stores have voted to unionize since late 2021. Starbucks does not support the unionization effort, and the union and company have yet to reach a labor agreement.
Starbucks reported it will incur $300 million in restructuring charges from the 250 store closures, including $200 million in cash charges for lease exits and employee separation benefits, and $100 million in non-cash charges from asset disposal and impairment.
Starbucks is continuing to retrofit its North American coffeehouses to make them cozier and more inviting. The company expects 1,500 stores will be retrofitted by September 30, 2026, the end of Starbucks' fiscal year.
Over 700 Starbucks stores unionized since late 2021 amid company restructuring.
Starbucks closes 250 North American stores with $300 million restructuring charge and 1,200 total layoffs.