September 27, 2025
For several months, Starbucks has been subjected to lawsuits for policy changes against workers and customers of the Black and LGBTQ+ community.
Is it a restructuring or the result of a boycott? Starbucks announced massive location closures and layoffs to focus on restructuring models, but social media says otherwise, the Associated Press reports.
In a Sept. 25 letter to employees, the Seattle coffee conglomerate said it will be shuttering hundreds of stores in the U.S., Canada, and Europe, resulting in layoffs of 900 nonretail employees to focus on resources for a turnaround process. Back in June 2025, the company had 18,734 North American locations, but with the new plan, by Sept. 28–the end of Starbucks’ fiscal year–there will be roughly 18,300 locations.
Baristas affected by the change will be offered severance packages and transfers to available locations.
In a letter, CEO Brian Niccol says the company took a deep dive into identifying locations that don’t promise financial growth or aren’t creating the physical environment expected from customers. “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.”
With restructuring in its future, Starbucks is expected to spend $1 billion, including $150 million for employee separation benefits and $850 million related to closing physical locations and exiting leases. Closing cost is an added stress to what Starbucks and other companies alike have suffered after being affected by President Donald Trump’s tariff wars. According to Fortune, thanks to the president’s 50% tariff on Brazil, the world’s largest coffee producer, the company’s stock has plummeted 1.15% year to date, in addition to being down 8% over the past five trading sessions.
The list of stressors also includes major pushback over policy changes, resulting in boycotts and lawsuits. Starbucks Workers United, a labor group representing hundreds of workers, said barista input wasn’t offered when discussing closures. “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 in a statement. After issuing Palestinian support and solidarity and condemning Israel, a global boycott began, in addition to a pause in hosting Pride decorations in stores.
For several months, Starbucks has been subjected to lawsuits for policy changes against workers and customers of the Black and LGBTQ+ community. In late September 2025, three states–California, Colorado, and Illinois–sued the company over its new dress code, accusing it of refusing to reimburse workers for the new clothes they had to purchase.
As word of the restructuring closures began to circulate on social media, users started celebrating, as boycotts have proven to hurt revenue for large corporations, similar to what happened to Target after it dialed back on its DEI initiatives. “But y’all swear boycotting big companies “doesn’t work” Baby their pockets are HURTING,” @drebae_ wrote on X.
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