Starbucks Layoffs in Canada: Severance Pay & Employee Rights

Starbucks announced on September 24, 2026, that it would close approximately 250 stores across North America, including locations in Canada. The closures are part of the company’s ongoing restructuring, following earlier store closures and corporate layoffs in 2025.

Canadian locations affected include stores in Ontario, British Columbia and Alberta. Starbucks has not publicly confirmed how many Canadian employees have lost their jobs.

Lost your job at Starbucks? Whether you were affected by a store closure, corporate layoffs or an individual termination, you may be owed more severance than your first offer. Eligible non-unionized employees in Ontario, Alberta and BC can receive up to 24 months’ compensation, depending on their circumstances.

Latest Starbucks Layoffs And Store Closures In Canada

On September 24, 2026, Starbucks confirmed plans to close approximately 250 North American coffeehouses as part of its Back to Starbucks strategy. The company said the selected locations weren’t meeting its expectations for customer experience or financial performance.

Canadian retail publication 6ix Retail identified at least 38 affected Canadian stores, including:

• Ontario: 12 locations, including four in Toronto.
• British Columbia: 10 locations, including stores in Vancouver.
• Alberta: Four locations.
• Quebec and New Brunswick: Additional locations were identified.

The reported Canadian total is not an official company-confirmed count. The number of employees losing their jobs is also unknown, since some affected workers may transfer to other Starbucks locations.

Among the Toronto locations identified were 350 Bay Street, 485 Church Street and 123 Portland Street.

Starbucks said it would offer transfers where possible and severance support to employees it could not place in another store.

The company also announced approximately 900 non-retail job cuts in September 2025 and 1,100 corporate layoffs in February 2025. Those were separate workforce reductions, not part of the September 2026 store closure count.

For the company’s announcement, see Starbucks’ September 24, 2026 statement.

How Much Severance Does Starbucks Pay In Canada?

There is no single severance formula that determines what every Starbucks employee in Canada is owed. Your entitlement depends on your age, length of service, position, employment contract and ability to find similar work.

According to an October 2026 Money.ca report, Starbucks Canada said its package for employees who could not be transferred included:

• A minimum of three weeks’ pay.
• Six months of access to its Employee Assistance Program.
• Extended health and dental coverage for eligible employees, including mental health benefits.

That package does not necessarily represent your full legal entitlement. Non-unionized Starbucks employees in Ontario, Alberta and BC may be owed substantially more, including up to 24 months’ pay.

Your severance should be assessed using your complete compensation, including wages or salary, benefits and any applicable bonuses or other regular payments.

Part-time employees can also have severance rights. Working fewer hours does not automatically mean you’re only entitled to the amount Starbucks initially offers.

You can get an initial estimate using our free Severance Pay Calculator.

What If Starbucks Offers You A Transfer?

Starbucks has said it will try to move affected employees to other stores. But you don’t necessarily have to accept a transfer that significantly changes your job.

A new location with a much longer commute, reduced hours, lower pay or substantially different responsibilities may raise concerns about constructive dismissal.

On the other hand, refusing a reasonable offer of comparable work may affect your severance rights.

Before accepting or refusing a transfer, get the proposed terms in writing and have them reviewed. Don’t resign simply because the new arrangement doesn’t work for you.

What If Starbucks Fires You Outside A Mass Layoff?

You don’t need to be part of a mass layoff to qualify for severance.

If Starbucks terminates your employment individually, eliminates your position or makes major changes to your working conditions, you may still have a claim for severance pay.

The same applies to employees working in corporate, management or support positions. Your rights don’t disappear because your termination wasn’t announced publicly or reported in the news.

Even if Starbucks says you were fired for cause, that doesn’t automatically mean you lose your severance rights. The legal threshold for denying severance is high, and many terminations described as being for cause don’t meet it.

The important question is whether you’ve been wrongfully dismissed (received the compensation you’re legally owed).

What Should You Do Before Signing A Starbucks Severance Package?

If you’ve been terminated, take these steps before accepting an offer:

1. Get the offer in writing. Keep your termination letter, employment agreement and any proposed release.
2. Check your complete compensation. Severance may include more than your regular wages or salary.
3. Have the package reviewed. An employment lawyer can explain what you’re owed and whether there’s room to negotiate.

Having your package reviewed doesn’t mean starting a lengthy legal battle. We successfully resolve a vast majority of severance disputes through negotiation without going to court.

At Samfiru Tumarkin LLP, our employment lawyers help non-unionized employees in Ontario, Alberta and British Columbia understand their rights and negotiate the compensation they’re owed.

Before you sign, always check first.

Starbucks Layoffs And Severance: Common Questions

Are Starbucks Employees In Canada Being Laid Off?

Starbucks confirmed Canadian store closures in September 2026, but it hasn’t released a total number of Canadian employees losing their jobs. Some workers may be transferred to other stores.

Can Starbucks Employees Get 24 Months’ Severance?

Yes. Eligible non-unionized employees in Ontario, Alberta and BC can receive up to 24 months’ compensation in appropriate cases. The amount depends on their individual circumstances and employment contract.

Does Starbucks Have To Pay Severance If A Store Closes?

Closing a store doesn’t eliminate an employer’s termination obligations. Employees whose jobs end may be entitled to notice, termination pay and additional severance compensation, depending on their circumstances.

Can I Negotiate My Starbucks Severance Package?

Yes. You don’t have to assume Starbucks’ first offer is the full amount you’re owed. Have the package reviewed before signing a release.

What If I’m A Unionized Starbucks Employee?

Contact your union representative about your termination, transfer and grievance rights. Samfiru Tumarkin LLP’s employment law team represents non-unionized employees.

Disclaimer: This article provides general employment law information, not legal advice about an individual case. Starbucks’ restructuring announcements do not establish that the company has violated any employee’s rights.