10:58 AM EDT, 09/25/2025 (MT Newswires) -- Starbucks ( SBUX ) plans to further reduce its non-retail headcount and close an unspecified number of its coffeehouses as part of a restructuring program that is expected to cost the company about $1 billion.

The coffee giant will eliminate about 900 non-retail partner roles and close "many open positions," Chief Executive Brian Niccol said in a letter to North American staff on Thursday.

"We will continue to carefully manage costs and stay focused on the key areas that drive long-term growth," Niccol said.

The latest round of layoffs comes after Starbucks ( SBUX ) announced in February that it will cut 1,100 non-retail support partner roles and eliminate "several hundred" unfilled positions.

The restructuring is part of the "Back to Starbucks ( SBUX )" turnaround strategy.

The company plans to close stores that are "unable to create the physical environment our customers and partners expect, or where we don't see a path to financial performance," Niccol said in the letter. The net company-operated store count in North America will decline by about 1% in fiscal 2025.

The majority of these store closures will likely be completed by the end of the current fiscal year.

The restructuring plan is estimated to result in about $1 billion in expenses, with a substantial portion of these charges falling in fiscal 2025, Starbucks ( SBUX ) said in a regulatory filing on Thursday. Some 90% of the costs are attributable to the company's North America business.

Starbucks ( SBUX ) late in July reported mixed fiscal third-quarter results, with sales increasing year over year and earnings declining as it continued to invest in its turnaround strategy. US same-store sales fell 2%.

Starbucks ( SBUX ) aims to close the fiscal year with almost 18,300 locations, both company operated and licensed, across the US and Canada, Niccol said. The group intends to grow its coffeehouse count in fiscal 2026, according to the CEO.

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