This marks the second round of closures within a year and forms part of the coffee giant's broader push to improve operational standards.

Starbucks (SBUX) plans to close roughly 250 underperforming coffee shops across North America this week, streamlining its business and improving operational profitability.

The move is the latest step by CEO Brian Niccol in his drive to reform business operations. It is the second round of store closures since Niccol took the helm. Niccol joined the coffee giant in September 2024.

The company's current fiscal quarter ends later this month, roughly the same time last year's corporate restructuring and layoff announcement was made.

Starbucks (SBUX) said the closures will result in about $300 million in restructuring charges. Niccol has previously set a goal of cutting $2 billion in costs by the end of fiscal 2028.

Chief Operating Officer Mike Grams wrote in an email to all employees: "Despite the hard work of all our partners, some coffee shops continue to underperform expectations."

The company said it will try to place baristas from closing stores elsewhere; those who choose to leave will receive severance. Last year, Starbucks (SBUX) spent months reviewing thousands of stores across the United States, closing hundreds that failed to meet expected profit levels and customer experience standards, while also cutting retail jobs.

Speaking in July about store profitability assessments and closure decisions, Niccol said: "This is just a routine review of business health."

According to official Starbucks (SBUX) data, as of the end of June the company operated 11,149 company-owned stores in North America, about 300 fewer than a year earlier.

Starbucks (SBUX) said its short-term store expansion focus will be on markets outside North America. The company is developing a smaller new store format, planned for rollout in the United States, to compete with fast-rising tea chains such as BROS. At the same time, Starbucks (SBUX) is renovating hundreds of existing U.S. stores.

Niccol is also aggressively trimming headquarters staffing. Starbucks (SBUX) previously cut about 2,000 corporate employees and eliminated hundreds of unfilled positions. In August, Starbucks (SBUX) announced more than 200 additional layoffs, including employees in store design and development and technology departments, who declined to relocate to the new headquarters in Nashville, Tennessee. Earlier this year, Starbucks (SBUX) cut hundreds more headquarters staff and closed regional offices in Chicago, Atlanta, Dallas and Burbank, California.

Earlier this week, Starbucks (SBUX) announced it will set up a new technology office in India and will hire locally in the southern city of Chennai.