Starbucks plans to close 250 coffeehouses in Canada and the United States later this week, in the second major round of North American closures since Brian Niccol became chairman and chief executive in 2024. The company did not identify the locations or say how many are in the U.S. It also did not disclose how many affected stores are unionized.

In a letter to employees, Chief Operating Officer Mike Grams said the locations being closed either do not produce acceptable financial results or cannot offer the experience Starbucks wants for customers and employees. “This progress has given us a clearer view of the performance of every coffeehouse,” Grams wrote. “While most are benefiting from this overall momentum, some coffeehouses continue to underperform despite the hard work and commitment of all of you.”

The company closed 627 stores in North America and Europe last September and eliminated 900 non-retail jobs. In May, it cut another 300 corporate positions and shut some underused offices in the United States. Starbucks said employees at closing stores will be moved to other locations where possible; those who cannot be placed elsewhere will receive severance support.

Starbucks is continuing renovations across its North American coffeehouses to make them cozier and more inviting. It expects to retrofit 1,500 stores by Sept. 30, the end of its fiscal year. Grams said the company remains committed to expanding its North American store count.

More than 700 U.S. Starbucks locations have voted to unionize since late 2021. Starbucks opposes the unionization effort, and the company and union have not reached a labour agreement. The company did not say how many unionized locations are among those set to close.

Global News asked Starbucks how many Canadian stores would close and how many workers in Canada could be affected. A spokesperson did not provide exact figures for Canada. Starbucks shares were down 0.3 per cent Thursday morning as trading opened. This report includes information from Global News’ Ariel Rabinovitch.

Based on reporting by Global News.