Starbucks to close 1% of North American stores, lay off 900 corporate employees in strategic shift

Business Insider

Starbucks said Thursday it will close 1% of its stores and lay off 900 corporate workers. Among the closures is its Seattle Reserve Roastery, one of the first unionized locations and a site of past protests.

Transcript

00:00Big changes are brewing at Starbucks. The coffee giant announced Thursday it's closing 1% of its

00:05retail stores and cutting 900 non-retail jobs across North America. Among the closures is one

00:10of its most iconic locations, the Seattle Reserve Roastery in Capitol Hill. A letter taped to the

00:15door broke the news early Thursday morning, and within hours, the windows were boarded up.

00:19Opened in 2014, this reserve roastery was a first for Starbucks. It had a luxe tasting room,

00:24cocktails on tap, and an expansive menu, but it was more than a coffee destination.

00:28In 2022, the Capitol Hill location became one of the first unionized Starbucks stores,

00:33and over the years, a backdrop for protests, including a rally just this week demanding

00:38a finalized labor contract. Union representatives say they plan to negotiate with Starbucks to make

00:43sure displaced workers are reassigned based on their preferences. A Starbucks spokesperson confirmed the

00:48store closure, but emphasized that the union status had no bearing on the decision to close the store.

00:53The company says it remains committed to its reserve roastery concepts, pointing to locations in Tokyo,

00:58Milan, and Chicago, with rising tensions between...

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