Starbucks is implementing a $1 billion restructuring plan involving the closure of over 100 North American stores, which will reduce its store count by about 1% in fiscal year 2025. The company, operating more than 11,400 locations as of June 2024, plans to end the year with approximately 18,300 stores including licensed cafes. The closures are part of CEO Brian Niccol’s 'Back to Starbucks' transformation strategy aimed at reversing a sales slump caused by increased competition and price-conscious consumers, with same-store sales declining for six consecutive quarters. About 900 non-retail employees will be laid off, with the majority of costs ($850 million) attributed to store closures and employee separation costs, mostly in 2025. Starbucks also plans to remodel over 1,000 existing locations to improve customer experience and foster a more inviting environment, emphasizing a return to its roots as a 'third place.' These measures follow earlier layoffs of 1,100 corporate workers this year, as Niccol seeks to streamline operations, cut costs, and focus on customer-centric investments such as enhanced labor standards and store redesigns. Despite the restructuring, Starbucks aims to resume growth in fiscal 2026, with plans to expand its store footprint. The move comes amid ongoing challenges, including a six-quarter decline in same-store sales, increased competition, and broader economic pressures, but Niccol reports the company is 'ahead of schedule' in its turnaround efforts.