Starbucks has announced it will close about 1% of its U.S. and Canadian locations and lay off 900 non-retail employees by the end of September 2025, as part of a $1 billion restructuring plan aimed at revitalizing the coffee giant’s business.

CEO Brian Niccol stated that approximately 430 underperforming stores will shutter, including several in the Houston area and Texas at large, with affected employees offered transfers to nearby stores or severance packages.

Specific closures in Houston include the Memorial & Asbury and Highway 6 and Dulles locations, according to reports from employees and users compiling unofficial lists on social media.

This move comes amid continuing challenges for Starbucks, which has seen falling same-store sales for six quarters as the brand navigates rising competition, economic headwinds, and evolving consumer preferences.

The closures and layoffs, part of the company’s “Back to Starbucks” initiative, are aimed at reducing operational costs, streamlining the store network, and focusing resources on store remodels and potential future growth.

While some locations are closing, Starbucks also plans to refurbish over 1,000 North American stores in the next year, with hopes that these investments and tough decisions will position the company for renewed momentum heading into 2026.