When did Brian Niccol join Starbucks? Coffee giant to see significant closures and layoffs as the new CEO's restructuring ventures

Starbucks CEO Brian Niccol announced on Thursday (September 25, 2025) via a letter to the employees that hundreds will be laid off this month. The coffee giant announced that it will close 1% of its stores, resulting in the layoff of nearly 900 employees.

At the end of the month, nearly 18,300 outlets would remain open in the US and Canada. Brian Niccol was announced as the CEO and Chairman of Starbucks on August 13, 2024.

He previously worked as CEO at Taco Bell and Chipotle.

Niccol stated in the letter that the decision to close outlets was their Back to Starbucks strategy. The stores that could not provide the desired environment for customers or give proper financial performance would be closed.

Then the coffee chain would allocate its resources to build new stores and renovate more than 1,000 of its well-performing ones, hire more staff at those locations, and create a better environment.

Brian Niccol stated that people who are laid off will be notified on Friday (September 26, 2025). They will receive "generous severance and support packages."

"Each year, we open and close coffeehouses for a variety of reasons, from financial performance to lease expirations. This is a more significant action that we understand will impact partners and customers. Our coffeehouses are centres of the community and closing any location is difficult," the CEO stated.

Starbucks to close hundreds of stores and lay off staff as the chain continues to struggle. pic.twitter.com/B7nktV2urS

— Globe Eye News (@GlobeEyeNews) September 25, 2025

Earlier this year, Starbucks fired 1,100 employees

Starbucks CEO Brian Niccol announced in February 2025 that nearly 1,100 employees were laid off as the company needed to "simplify" its structure by creating "smaller," "nimble" teams.

The CEO also stated that while he understood the struggle layoffs would create for the former employees, they needed to be done for the sake of the company's betterment.

Brian Niccol shared that the employees would receive a severance package, healthcare, and career transition services.

"We are simplifying our structure, removing layers and duplication, and creating smaller, more nimble teams... I recognize the news is difficult. It is not a decision the leadership team took lightly. We understand the real effect this has on partners' lives and their families. We believe it's a necessary change to position Starbucks for future success," the CEO stated.

At the same time, the coffee giant reconstructed its menu by removing 30% of the items. The company stated that multiple food and beverage items were complex to make and unpopular at the same time.

Items such as iced energy drinks and olive oil coffees were removed from the menu.

In other news, the coffee chain recently fired a barista who wrote "racist’s fav drink" on a customer's drink when they asked for a mint majesty tea with two honeys.

For the unversed, following Charlie Kirk's assassination this month, his followers started ordering Kirk's Starbucks favourite drink, a mint majesty tea with two honeys.

At first, baristas refused to write Charlie Kirk on the cups when requested, claiming that they were not allowed to do so. Then the company instructed its employees they write the name.

Starbucks garnered massive backlash online for this action.

Stay tuned for more updates on the coffee chain.