Starbucks Layoffs Canada: September 2025 Job Cuts & Severance Rights

Latest Starbucks Layoff Update

Starbucks is undergoing its largest restructuring in years. In 2025, the coffee giant announced multiple rounds of corporate layoffs, store closures, and workplace changes that have impacted thousands of employees across Canada and the United States.

• Sept. 2025: 900 corporate jobs eliminated ~500 stores closing (including unionized cafés and the iconic Seattle roastery)
• Feb. 2025: 1,100 corporate employees laid off globally
• Return-to-office mandate: Employees in Toronto and Seattle are expected to work from the office 4 days a week in October, or accept voluntary exit packages

CEO Brian Niccol says the changes will cut over $1 billion in costs and “restore the coffeehouse experience” to boost sales (Reuters).

But for many non-unionized Starbucks workers in Canada, these layoffs raise urgent questions about severance pay, wrongful dismissal, and employee rights.

Starbucks Layoffs Across Canada

Starbucks closures aren’t just happening in the US — Canadian cities are also affected (6ixretail).

• Toronto: 13 stores confirmed closed, including Yorkville, Queen West, and College & Bathurst
• Ottawa: 9 stores permanently closed, such as Bank Street, Hunt Club Road, and Carling Avenue
• Edmonton: 4 stores closed, including the new Sunwapta location
• Vancouver: Closures include 2nd & Yukon and Grandview Hwy & Natal Street

The human impact of these closures is already visible. On Reddit, one Starbucks employee shared that they had just learned their store was shutting down.

They described the news as “unexpected” and admitted they weren’t sure what to do next — a reality many non-unionized workers face when sudden layoffs occur.

Our Experience with Starbucks Layoffs & Lawsuits

At Samfiru Tumarkin LLP, we have direct experience representing Starbucks staff.

• We previously launched a wrongful dismissal lawsuit against the company after an employee was terminated without proper severance.
• Our team has also helped baristas, managers, and corporate employees secure the full severance they were owed under Canadian law.

This track record gives us unique insight into Starbucks’ layoff practices and how to protect your rights.

Severance Pay for Starbucks Staff

If you’re a non-unionized Starbucks employee in Canada, you may be entitled to up to 24 months’ pay as severance in Canada when you’re let go.

How Severance is Calculated

Several factors determine what you’re owed, including:

• Age
• Length of service
• Position or seniority
• Ability to find similar work (job market conditions)

What a Fair Package Should Include

A proper and fair severance package from Starbucks must cover:

• Salary
• Bonuses & commissions
• Benefits & pension contributions
• RSUs, stock options, incentive pay
• Vacation pay & allowances

Not Always Called a “Layoff”

In some cases, Starbucks (and other large employers) avoid calling it a layoff by cutting pay, reducing responsibilities, or reassigning employees.

For non-unionized workers in Canada, these changes may qualify as constructive dismissal, which is legally treated the same as a termination — potentially entitling you to full severance pay.

Severance Success Stories: Our Track Record

We’ve achieved extremely favourable results for employees at major corporations, including:

• ✅ 24 months’ severance for a long-term professional after refusing unfair new terms post-acquisition. See our win →
• ✅ 6 months’ severance for a short-term executive pressured to sign an unfair release after termination. See our win →
• ✅ 4 months’ severance for an employee terminated after just eight months in a senior role. See our win →

Most individuals are surprised by how much they’re legally owed after being wrongfully dismissed. Taking it one step further, we’re often able to get employers to cover our client’s legal fees.

FAQs on Starbucks Layoffs

Lost Your Job at Starbucks? Get Help Now

If you’ve lost your job at Starbucks for any reason, don’t sign anything before seeking legal advice.

At Samfiru Tumarkin LLP, we’ve:

• 👥 Represented 50,000+ Canadians
• 💰 Secured millions in severance payouts
• ⚖️ Settle over 99% of cases out of court
• ⭐ Earned 3,000+ 5-star Google reviews
• 🏆 Named one of Canada’s Best Law Firms

📞 Call us at 1-855-821-5900 or request a consultation online.

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.