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Market Analysis

Starbucks shuts 430 stores and cuts 900 jobs in North America — see the top 3 local drinks fans can’t live without

Last updated: September 26, 2025 3:55 am
Published: 6 months ago
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Starbucks is closing over 430 stores and laying off 900 employees in North America as part of its “Back to Starbucks” plan. Despite the shake-up, fans can still enjoy the top 3 most-loved drinks in the region.Starbucks is about to make some major changes in the United States and Canada. The Seattle-based coffee giant will close about 1% of its stores and cut around 900 jobs as part of what it calls its “Back to Starbucks” transformation strategy. CEO Brian Niccol told employees about the move in a memo on Thursday, September 25. He explained that this step is part of a bigger plan to turn the company around after a tough year.

Niccol said in the memo, which was also posted on the Starbucks blog, that some stores will shut down because “we’re unable to create the physical environment our customers and partners expect, or where we don’t see a path to financial performance.” In simple words, these are stores that aren’t doing well or can’t be set up in a way that customers enjoy. That’s why Starbucks is taking what Niccol called “significant action” to help the company grow again.

The closures mean that Starbucks will have about 18,300 coffee shops in North America at the end of September, down from 18,734 at the end of June 2025, according to the company’s latest quarterly earnings release. That’s roughly 430 fewer locations than just a few months ago.

Niccol also announced that 900 jobs will be cut at Starbucks headquarters. These layoffs come on top of about 1,000 corporate job cuts that happened in February. Despite the downsizing, Niccol assured employees that the company will keep moving forward. “We will return to growth mode,” he said in his message, adding that the company will remodel more than 1,000 of its remaining stores to give them a fresh look with “cosier chairs, more power outlets, and warmer colours.”

Starbucks has closed stores before, but this time the scale is much bigger. Niccol pointed out that the stores closing now are ones where there is no clear path to making money or where the space can’t meet customer needs. Even with these changes, Starbucks plans to spend about $1 billion on its restructuring efforts.

According to company statements, the goal is to make the coffee chain stronger in the long run and bring customers a better experience when they visit.

For customers worried that their local Starbucks might close, there’s some good news: the drinks people love most aren’t going anywhere. Even if a few locations shut their doors, these favorites will still be served wherever Starbucks operates nearby. According to Accio’s market analysis of Starbucks’ top-selling drinks, the company’s 2025 summer and fall menus reveal clear trends shaped by customer habits.

One popular pick is the Iced Horchata Oatmilk Shaken Espresso, which takes inspiration from Latin American horchata. It blends oat milk, espresso, and cinnamon-vanilla syrup for a creamy, spiced flavor.

Another big favorite is the Summer-Berry Refreshers, offered in coconut milk and lemonade versions, which have become a seasonal hit. And of course, the classic Pumpkin Spice Latte (PSL) continues to draw long lines every fall.

Accio’s analysis notes that these drinks remain bestsellers because they mix customer nostalgia with seasonal excitement.

Read more on IndiaTimes

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