Starbucks is set to close 250 stores across North America by the end of the week. The decision has left employees uncertain about their job security, especially given the short notice they received.
A customer shared their concern on Reddit, posting a photo of a letter displayed at a local Starbucks. The letter thanked “amazing customers” and announced the store’s closure. The user mentioned speaking with a barista who received less than 48 hours’ notice about the possibility of being laid off.
Another Reddit user queried the severance pay Starbucks offers to employees affected by the initial round of store closures. They expressed frustration over the timing, with rent due soon and holidays approaching. Some employees were informed with only a day or three days’ notice, while the company requires at least two weeks’ notice from staff leaving voluntarily. Many employees remain unsure of their future.
A former manager shared their “bittersweet” experience in surrendering their store’s key after closure. They hoped for a transfer but acknowledged the uncertainty ahead.
“Hopefully I get transferred, if not, until next time,” the former manager commented.
Starbucks COO Mike Grams explained the closures in a memo to employees. Following a company operations review, it was found that many stores struggled to deliver financial performance and customer experiences. Consequently, Starbucks decided to close stores representing about 1 percent of its 18,000 North American locations.
The company aims to support affected employees through transfer opportunities or severance packages when reassignment isn’t possible. Despite recent closures, Starbucks remains committed to North American growth, with new openings planned.
According to CNN, Starbucks plans to open 440 new locations globally this year, down from the previous target of 600 to 650. The company will incur about $300 million in charges, including $200 million for early lease cancellations and severance payments.
Which Stores Are Closing?
The specific stores closing have not been listed outright by Starbucks. Customers are encouraged to check signage at closing locations or use the Starbucks app and website for updated information.
California Stores
The San Francisco Chronicle reports on closures across the Bay Area:
- 3547 Mt. Diablo Blvd., Lafayette
- 1663 N. California Blvd., Walnut Creek
- 795 First St., Gilroy
…(more store listings)…
SFGate reports additional presumed closures, with stores showing “closed” status in upcoming days:
- 27072 La Paz Road, Aliso Viejo
- 710 S. Azusa Ave., Azusa
- 2755 Agoura Road, Westlake Village
…(more store listings)…
U.S. Locations
An employee’s open-access list includes the following U.S. stores slated for closure:
- 1161 Florence Blvd, Florence, Alabama
- 3550 E. Southern Avenue, #104, Mesa, Arizona
- 1609 S Park Street, Madison, Wisconsin
…(more store listings)…
While Newsweek has sought confirmation, Starbucks has yet to verify this extensive list.