On the heels of Starbucks’ recent announcement it will be cutting 900 corporate roles and closing 1% of its Northern American stores by the end of 2025 (after accounting for both new openings and closures), Starbucks Workers United said Tuesday that 59 of those locations marked for closure are unionized locations.
Starbucks Workers United, the worker-led effort to unionize Starbucks baristas, represents 12,000 baristas in 45 states and Washington D.C., across more than 650 cafes.
The closures, announced last week by CEO Brian Niccol, are part of a massive $1 billion restructuring strategy dubbed “Back to Starbucks,” aimed at turning around declining sales and brand image damage.
Representatives from Starbucks and Starbucks Workers United declined to share details about the fate of specific locations.
“While we remain outraged at how callously Starbucks handled these closures, we are proud that we have forced the company to make this process fairer for impacted union baristas,” said Starbucks Workers United spokesperson Michelle Eisen. “These measures to support baristas show the power and strength of our union. We remain focused on organizing stores and demanding Starbucks settle a fair union contract that improves hours and staffing, increases take-home pay, and resolves unfair labor practices.”
Reached for comment, a Starbucks spokesperson told Fast Company: “Given the industry-leading offer provided to all affected partners – including reassignment opportunities where possible as well as generous severance – we were able to quickly reach an agreement with Workers United to similarly help represented partners through this transition. This reflects our commitment to partner care.”
A spokesperson for the company also told amNY that unionization “was not a factor” in the decision to close specific locations.
Baristas from closing stores will either be offered severance packages or transferred to new locations, which has led uneasy employees to crowdsource their own list of shuttering locations as they wait for official word.
The stakes remain high for Starbucks if it fails to settle a contract and workers go on strike ahead of the holiday season, which is the busiest and most profitable time of the year.