Starbucks Announces Major Layoffs and NYC Store Closures Amidst Operational Review

Starbucks is undergoing significant operational changes, including the layoff of 900 workers and the closure of numerous stores across the country, with dozens specifically impacting New York City. This move follows a recent company announcement outlining a strategic review of its North American coffeehouses.

According to Starbucks Chairman and CEO Brian Niccol, the objective of this review is to ensure every location offers a “warm and welcoming space.” The company identified and will close stores that do not meet these environmental standards or lack a clear path to financial viability. While some of the affected NYC locations are unionized, a Starbucks spokesperson stated that union status was not a factor in the closure decisions.

The immediate closures in NYC span across Manhattan, Queens, and Brooklyn. Starbucks has committed to offering generous severance packages and support, including benefits extensions, to affected non-retail employees who were notified of the cuts. The company is also actively working to transfer coffeehouse workers to nearby locations where possible, prioritizing partner care for those who cannot be immediately placed.

This wave of closures comes after the company previously shut down its iconic Astor Place location in July 2024, a significant event given its history as NYC’s largest Starbucks upon its opening in 1995.

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