Starbucks closes Washington stores, cuts HQ jobs
The company confirmed the shutdown of five locations in Washington state and the layoff of eight employees at its Seattle headquarters.
Starbucks confirmed the permanent closure of five of its stores in the state of Washington and the elimination of eight positions at its Seattle headquarters. The measures, which affect 51 workers, are part of a restructuring plan already announced by the company.
Store closures and headquarters cuts
The company said the five stores to be closed are located in Redmond, Seattle, Spokane and Vancouver. The specific locations are: the Redmond retail store at 7625 170th Ave. NE; the Rainier Avenue location at 9150 Rainier Ave. S, Seattle; the Leary Way and 11th Avenue Northwest store at 999 Leary Way NW, also in Seattle; the Wellesley and Belt store at 2401 W. Wellesley Ave., Spokane; and the 164th and Mill Plain store at 918 S.E. 164th Ave., Vancouver.
In addition to the store closures, Starbucks will also cut eight positions at its Seattle Support Center headquarters, located at 2401 Utah Ave. S. The affected roles include an accountant, a senior manager, a director, two service representatives, two managers and a project manager. The terminations are scheduled to occur between November 14 and December 4.
Restructuring strategy and financial results
These closures and job cuts are part of changes Starbucks announced on September 24. Last month, the company disclosed the closure of 250 stores across North America. In a letter to employees, Mike Grams, Starbucks’ chief operating officer, explained that the selected units were not delivering acceptable financial results or were unable to provide the experience the company seeks for customers and staff.
Starbucks has been investing in modernizing its North American cafés to make them cozier and more inviting. The goal is to remodel 1,500 stores by September 30, which marks the end of Starbucks’ fiscal year. Grams said this progress has given a clearer view of each café’s performance, and while most are benefiting, some continue to underperform.
Impact on workers
In total, 51 workers will be affected by the closures and cuts. Among the store staff are baristas, shift supervisors and a coffee lead. Starbucks said it will offer to transfer some employees to other company locations where possible. If relocation is not feasible, the company will provide severance support. Affected workers received at least 60 days’ notice. The layoffs are permanent.
Relationship with the union organization
The majority of affected workers are not union‑represented and do not have "bumping" rights, i.e., the right to assume a less‑experienced employee’s position in another role. However, employees at the Redmond Retail and Wellesley and Belt stores are union‑represented. Starbucks does not support unionization efforts and has not reached a labor agreement with unions. More than 700 Starbucks stores in the United States have voted for unionization since late 2021.
With information from MyNorthwest.com, KOMO.
Source: MyNorthwest.com, KOMO