Boston, September 30, 2025
News Summary
Starbucks has announced the closure of several stores in the Boston area, including an iconic location in Government Center. This decision is part of a $1 billion restructuring plan aimed at reshaping operations and enhancing long-term performance. The closures will impact various neighborhoods across Boston and involve the elimination of approximately 900 corporate jobs nationwide. Customer notifications have been placed at affected locations, guiding them to nearby stores as the company strives to enhance efficiency and financial viability in its operations.
Boston
Starbucks to close several Boston stores as part of $1 billion restructuring
Several Starbucks stores in the Boston area are scheduled to close. The moves are part of a broader, $1 billion turnaround plan that the company says is aimed at reshaping operations and improving long-term performance. The closures include an iconic store beneath the steaming kettle at Government Center and are expected to affect customers and partners across the city while forming part of a nationwide restructuring effort.
Key developments
The Court Street Starbucks in Government Center is set to close at the end of the week, with its last operational day being Sunday. Other Boston locations scheduled for closure include stores in Cleveland Circle, Coolidge Corner, Davis Square, Harvard Square, and Downtown Crossing. Various signs have been posted at the closing locations informing customers of the closures, often including a QR code to find nearby stores.
As part of the corporate restructuring, Starbucks will also eliminate approximately 900 corporate roles as part of the restructuring effort. The company plans to offer severance packages to those affected by the layoffs and transfers to other locations where possible.
How the company describes the changes
Starbucks’ leadership says the company regularly opens and closes coffeehouses for a variety of reasons, including financial performance and lease expirations. The current closures represent a more significant action that will impact partners and customers. The company plans to close locations where it cannot create the expected physical environment for customers and partners or where there is no clear path to financial performance.
Financial scope and expected store counts
The Seattle-based company stated that it expects to have 18,300 North American locations by the end of the fiscal year, a decrease from the current count of 18,734. Starbucks’ restructuring includes an expected expenditure of $1 billion, with $150 million allocated for employee separation benefits and $850 million for closing stores and exiting leases.
Local impact and reactions
The expected impact is both local in Boston and nationwide. Many customers express sadness over the closures and highlight the community aspect of these locations. Starbucks Workers United has criticized the store closure decisions, stating they were made without barista input.
What customers at closing stores are being told
Signs at affected stores provide closure dates and direct customers to nearby locations via QR codes. The company says it will seek to move affected employees to other stores where possible and will provide severance packages to those whose roles are eliminated.
Background and context
The closures and corporate job reductions are part of a larger strategy to improve efficiency and focus on store formats and locations that meet the company’s physical and financial standards. The company has been evaluating its portfolio of stores and corporate roles to align with longer-term performance targets. This latest step follows other changes in company operations and follows management’s direction to prioritize spaces that deliver the expected experience for both customers and partners.
FAQ
Q: Which stores are scheduled to close?
A: Several Starbucks stores in the Boston area are scheduled to close.
A: The Court Street Starbucks in Government Center is set to close at the end of the week, with its last operational day being Sunday.
A: Other Boston locations scheduled for closure include stores in Cleveland Circle, Coolidge Corner, Davis Square, Harvard Square, and Downtown Crossing.
Q: Why are these stores closing?
A: The closures are part of Starbucks’ broader, billion-dollar turnaround plan aimed at reshaping operations and improving long-term performance.
A: The company plans to close locations where it cannot create the expected physical environment for customers and partners or where there is no clear path to financial performance.
Q: Will there be job cuts beyond store closures?
A: Starbucks will also eliminate approximately 900 corporate roles as part of the restructuring effort.
A: The company plans to offer severance packages to those affected by the layoffs and transfers to other locations where possible.
Q: What are the company-wide effects and costs?
A: Starbucks’ restructuring includes an expected expenditure of $1 billion, with $150 million allocated for employee separation benefits and $850 million for closing stores and exiting leases.
A: The Seattle-based company stated that it expects to have 18,300 North American locations by the end of the fiscal year, a decrease from the current count of 18,734.
Q: How are customers being notified?
A: Various signs have been posted at the closing locations informing customers of the closures, often including a QR code to find nearby stores.
Q: How have people reacted?
A: Many customers express sadness over the closures and highlight the community aspect of these locations.
A: Starbucks Workers United has criticized the store closure decisions, stating they were made without barista input.
Q: Is the iconic Government Center location among those shutting down?
A: An iconic location beneath the steaming kettle at Government Center will be among those shutting down.
Quick reference table
| Item | Detail | Scope |
|---|---|---|
| Planned Boston closures | Court Street (Government Center), Cleveland Circle, Coolidge Corner, Davis Square, Harvard Square, Downtown Crossing | Boston |
| Iconic Government Center store | An iconic location beneath the steaming kettle at Government Center will be among those shutting down. The Court Street Starbucks in Government Center is set to close at the end of the week, with its last operational day being Sunday. | Boston |
| Corporate job reductions | Starbucks will also eliminate approximately 900 corporate roles as part of the restructuring effort. | Nationwide |
| Restructuring cost | Starbucks’ restructuring includes an expected expenditure of $1 billion, with $150 million allocated for employee separation benefits and $850 million for closing stores and exiting leases. | Nationwide |
| Expected store count | The Seattle-based company stated that it expects to have 18,300 North American locations by the end of the fiscal year, a decrease from the current count of 18,734. | North American |
| Customer notices | Various signs have been posted at the closing locations informing customers of the closures, often including a QR code to find nearby stores. | Boston |
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Additional Resources
- Boston 25 News
- NBC Boston
- WCVB
- CBS News
- MassLive
- Wikipedia: Starbucks
- Google Search: Starbucks closures Boston
- Google Scholar: Starbucks closure impact
- Encyclopedia Britannica: Starbucks Corporation
- Google News: Starbucks closures
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