Starbucks Layoffs: Coffee chain closing 200 Stores in Canada in strategic shift

What’s happening at Starbucks?

Starbucks has announced plans to close up to 200 Canadian stores over the next two years, citing a strategic shift toward optimizing store formats and adapting to changing consumer habits. This move comes as the company projects a “new normal” for business operations beyond the COVID-19 pandemic. In a recent filing with U.S. securities regulators, Starbucks detailed the shift as part of a broader North American repositioning effort.

Key details on the layoffs and closures

• Starbucks operates roughly 1,400 stores in Canada, meaning approximately 15% of its Canadian locations could close.
• These closures will focus on underperforming stores, with some remaining open but transitioning to pickup-only formats aimed at mobile app users.
• Starbucks will expand its “Starbucks Pickup” concept, a store format without seating designed for customers who order in advance.

Although Starbucks plans to close several North American locations, it will still open approximately 300 new stores across the Americas this year, though this is a reduction from its initial target of 600.

Next steps

Non-unionized employees affected by layoffs at Starbucks are entitled to full severance pay in Canada. This includes individuals working in any capacity – full-time, part-time, hourly, or as “independent contractors” – in Ontario, Alberta, and British Columbia.

Key Severance Facts:

• Severance Pay: Can be up to 24 months’ pay, depending on role, length of service, age, and other factors. Learn more with our severance pay resource.
• What’s Included: In addition to salary, severance may cover bonuses, commissions, and other compensation.
• Deadlines: You have up to two years from your termination date to pursue severance, regardless of any employer-imposed deadlines, which are not legally enforceable.
• Get Help: Contact Samfiru Tumarkin LLP for a severance review and to get proper compensation.

Learn more about severance rights for Align employees by visiting our detailed Align Technology severance packages page.

Before you sign a severance package

Use our free Severance Pay Calculator to confirm if your offer is fair. This interactive tool has helped millions of Canadians confirm their entitlements. If you offer is less than the calculator’s estimate, you may have grounds for a wrongful dismissal claim – reach out to our team at Samfiru Tumarkin LLP for guidance.

LEARN MORE
• Severance pay for provincially regulated employees
• Rights to severance during mass layoffs
• Severance entitlements in a recession

WATCH: Employment lawyer Lior Samfiru explains severance rights if you’ve been downsized, on an episode of the Employment Law Show.

Talk to an employment lawyer

If you’re facing job loss or workplace issues, explore your options with our Pocket Employment Lawyer tool or contact the experienced team at Samfiru Tumarkin LLP.

Our lawyers in Ontario, Alberta, and B.C. have successfully represented tens of thousands of non-unionized employees. Beyond severance packages, we can assist with issues like:

Get the advice you need and the compensation you deserve.

Disclaimer: The materials above are provided as general information about the rights of non-unionized employees in Canada. It is not specific to any one company and should not be read as suggesting any improper conduct on the part of any specific employer, or a relationship between Samfiru Tumarkin LLP and a specific employer.