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Starbucks store closings: 59 unionized locations on doomed list in company restructuring
StarbucksStarbucks(US:SBUX) Fastcompanyยท2025-10-01 13:31

Core Insights - Starbucks announced the closure of 900 corporate roles and 1% of its North American stores by the end of 2025 as part of a $1 billion restructuring strategy aimed at improving declining sales and brand image [2][3] - Starbucks Workers United reported that 59 of the locations set for closure are unionized, highlighting the impact of unionization on the company's decisions [2][3][5] - The company is offering severance packages or transfer opportunities to affected baristas, while also facing pressure to settle a fair union contract to avoid potential strikes during the busy holiday season [8][7] Company Actions - The closures are part of a strategy called "Back to Starbucks," which aims to address sales decline and brand image issues [3] - Starbucks has committed to providing industry-leading offers to affected employees, including reassignment opportunities and generous severance [7] - The company has stated that unionization was not a factor in the decision to close specific locations [7] Union Response - Starbucks Workers United expressed outrage over the handling of closures but acknowledged the union's influence in making the process fairer for impacted baristas [5] - The union is focused on organizing stores and negotiating a fair contract that improves working conditions and pay for employees [5]