Starbucks announced the “Back to Starbucks” recovery program almost two years ago, which was meant to help the company that was falling into increasingly serious financial problems get back on track. The restructuring was expected to cost the company $400 million, of which $120 million was earmarked for severance pay for the employees being laid off. When the process began, Starbucks had almost 11.5 k of its own stores worldwide (including franchises, the number of coffee shops exceeds 20 k). The plan was to reduce their number by about 1%. This was associated with layoffs. These so far have affected nearly 2 k employees in various locations. The company did not stop there.
Further layoffs at Starbucks
After laying off many employees at the coffee shops, Starbucks now has to deal with the administration. In the next wave of layoffs in the American chain, nearly 200 people will receive termination notices. This time they will be employees from marketing, HR, and personnel, as well as people responsible for supply chains. Initially, the layoffs will only affect employees in the United States, but it is not ruled out that the wave will spread to other countries. For now the company is analyzing the situation.
Layoffs are not the only bad news. The chain is also closing several branches, including in the USA, such as in Atlanta, Dallas, and Chicago. This does not mean that the chain is “shrinking”. In some locations worldwide new points are being created to help increase the company’s profitability. So far it seems that the restructuring is having the intended effect. In the first quarter of 2026, sales in the United States rose by 7% year‑on‑year.
“We are focusing on maintaining the pace of change and ensuring that these results repeat. We want to provide profitable growth with a healthy cost structure. In this way we turn progress into results,” explains Brian Niccol, CEO of Starbucks.
Starbucks changes the game rules
Changing the number of locations or laying off employees is not the only change happening at Starbucks. Customers will also feel it. The coffee chain is changing its approach to consumers. Starbucks will no longer be a place to spend free time without incurring any costs. The chain is introducing significant changes for customers who to use the coffee shop they will have to use its offer. Seating at a table will only be possible after showing a receipt confirming the order. And that is not the only change. Another is the end of free toilets for everyone, which the chain was associated with in recent years. Use of them will be possible only for coffee shop customers.
The changes will also affect the appearance of many locations. Ultimately, Starbucks authorities want to renovate almost 1 k coffee shops, which will become a more cozy place. They will have a modern design and furniture replacement. The approach to the customer will also be different. Baristas and the coffee preparation process will play a larger role than before, making the “black drink” available at Starbucks unique.
Starbucks is a coffee shop chain with 55 years of tradition. The first coffee shop opened in 1971 in Seattle, Washington.
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