News Summary
Starbucks has announced it will close several underperforming stores in Massachusetts, including a notable location in Boston’s Government Center. This move is part of a nationwide restructuring aimed at improving financial performance. Employees affected by the closures will receive severance packages or options to transfer to nearby stores. The closures follow evaluations of store performance, and with plans to shut down hundreds of locations nationwide, there are growing concerns among workers regarding their future placements within the company.
Boston – Starbucks has announced it will be closing multiple underperforming stores across Massachusetts, including the iconic location under the Golden Teapot in Boston’s Government Center. This decision is part of a broader nationwide restructuring effort aimed at improving the company’s financial performance and addressing lease expirations. Affected employees will be provided with severance packages or the chance to transfer to nearby Starbucks locations.
The upcoming closures come in light of store performance evaluations conducted by the company’s leadership. CEO Brian Niccol stated that various locations are not meeting expected financial standards, prompting the need for a significant shift in operations. A sign at the Government Center has already informed customers that the store will cease operations by the end of the week. Other affected locations, such as the Starbucks in Harvard Square, have seen similar closure notifications, with employees reportedly given only a day’s notice before the announcement.
In total, Starbucks is set to close a variety of locations in the Boston area, including stores at 540 Commonwealth Ave. in Kenmore Square, Soldiers Field Road, Tremont Street, and multiple branches in Cambridge, Brighton, and Wellesley. The list includes:
- 540 Commonwealth Ave. (Kenmore Square), Boston
- 1660-1670 Soldiers Field Road, Boston
- 192 Tremont St., Boston
- 30 Rowes Wharf, Boston
- 11 West Broadway St., South Boston
- 1948 Beacon St. (Cleveland Circle), Brighton
- 850 River St., Hyde Park
- 874 Commonwealth Ave, Brookline
- 1 JFK St. (Harvard Square), Cambridge
- 1662 Massachusetts Ave., Cambridge
- 11 First St., Cambridge
- 661 Boston Post Road East, Marlborough
- 177 College Ave., Medford
- 333 Worcester St., Natick
- 474 Woodward St. (Waban), Newton
- 260 Elm St. (Davis Square), Somerville
- 68 Central St., Wellesley
The planned store closures are part of a larger strategy by Starbucks that includes shutting down hundreds of locations nationwide and laying off 900 non-retail employees. The company intends to spend $1 billion on this restructuring initiative, allocating $150 million for employee separation benefits and $850 million dedicated to the costs associated with store closures and lease terminations.
Although the closures have been confirmed by employees at the impacted locations, there are concerns regarding the decision-making process. Employees have noted that closure decisions were made without input from baristas, leading to apprehension among workers represented by Starbucks Workers United regarding their future placements.
Starbucks currently operates 18,734 locations across North America, with plans to reduce that number to approximately 18,300 by the end of the fiscal year. The significant reduction in store count reflects growing challenges faced by the company in maintaining performance across its vast network of coffee shops.
As the announcement ripples through the community, customers have expressed surprise and sadness over the impending closures. Many recall the deep connection these locations have with their neighborhoods, citing their popularity as vital community gathering points. As closure days approach, patrons are left reflecting on the local Starbucks experience that may soon vanish.
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Author: STAFF HERE BOSTON WRITER
BOSTON STAFF WRITER The BOSTON STAFF WRITER represents the experienced team at HEREBoston.com, your go-to source for actionable local news and information in Boston, Suffolk County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Boston Marathon, Head of the Charles Regatta, and Boston Harborfest. Our coverage extends to key organizations like the Greater Boston Chamber of Commerce and Associated Industries of Massachusetts, plus leading businesses in finance, biotech, and insurance that power the local economy such as Fidelity Investments, Biogen, and Liberty Mutual Insurance. As part of the broader HERE network, we provide comprehensive, credible insights into Massachusetts's dynamic landscape.
