Starbucks Announces $1 Billion Restructuring Plan to Cut Costs and Close Stores

SBUX
October 03, 2025
On October 2, 2025, Starbucks Corporation announced a $1 billion restructuring plan aimed at improving profitability under its "Back to Starbucks" strategy. The plan includes the closure of a number of underperforming U.S. stores and a comprehensive review of operating costs. The restructuring is part of a broader effort to streamline the company’s footprint and reduce operating expenses. By closing underperforming locations, Starbucks expects to lower overhead and free up capital for investment in high‑margin initiatives such as the Green Apron Service and digital ordering enhancements. The announcement signals a decisive shift in Starbucks’ approach to its U.S. retail network, reflecting the company’s commitment to long‑term profitability and a more focused store portfolio. Investors will monitor the plan’s execution and its impact on future earnings and cash flow. The content on BeyondSPX is for informational purposes only and should not be construed as financial or investment advice. We are not financial advisors. Consult with a qualified professional before making any investment decisions. Any actions you take based on information from this site are solely at your own risk.