The closures are part of a $1 billion restructuring plan that included nearly 1,000 employees being laid off. (Robert Way/Shutterstock)
Coffee lovers across the US are having to ditch their normal spots, as Starbucks closed over 400 locations across the country this past week.
The closures are part of a $1 billion restructuring plan that included nearly 1,000 employees being laid off.
“During the review, we identified coffeehouses where we’re unable to create the physical environment our customers and partners expect, or where we don’t see a path to financial performance, and these locations will be closed,” CEO Brian Niccol said.
Niccol made approximately $96 million in total compensation in 2024. This is about 6,666 times more than the median worker.
The announcement has stirred up feelings across multiple Starbucks, especially as it comes on the heels of the implementation of other new company initiatives, including requiring baristas to write on each item sold; ending its open-bathroom policy; and laying off 1,100 corporate employees back in February. The company has still not agreed to a contract in union negotiations.
“This announcement makes it clear things are only going backwards at Starbucks under Brian Niccol’s leadership. Yet again, we’re experiencing new policies and major decisions being made with zero barista input,” Starbucks Workers United, a worker-led unionizing effort, said in an email to COURIER HTX.
Stores that are closing in the Houston area, per reporting from USA Today:
- 14333 Westheimer Road, Houston
- 2101 Smith St., Houston
- 5535 Memorial Drive, Houston
- 851 FM 1960 W., Houston
- 4721 Highway 6 S., Missouri City
- 5115 Buffalo Speedway, Houston
- 22020 Westheimer Parkway, Katy
- 3407 Montrose Blvd., Houston
- 9235 Westheimer Road, Houston
- 822 Town and Country Blvd., Houston
- 1515 Studemont St., Houston
On the bright side, union negotiations have secured the following benefits for employees that were laid off at any of the 59 union locations that closed. According to a map on Starbucks Workers United’s website, none of the Houston stores that are closing are part of the union.
As noted in the press release:
- Union partners will get severance even if they turn down a transfer offer. Non-union baristas who don’t accept transfer offers lose severance.
- Union partners will get two days to accept a transfer offer, compared to non-union baristas who are forced to decide immediately.
- Health benefits for enrolled union partners will continue through October 31 or December 31 in stores covered by a WARN Act.
- Union partners who don’t get a transfer offer will be paid for scheduled shifts through October 5 if not covered by Fair Workweek or WARN Act, in which case they would be paid through October 12 and December 5 respectively.
- If the union has formally disputed a union partner’s final written warning, Starbucks and the union commit to a good faith review to determine reassignment. At non-union stores, a final written warning can automatically mean a partner is ineligible for transfer.
