AsianFin -- Starbucks announced Thursday a $1 billion restructuring plan that will shrink its North American footprint and cut jobs as the company presses ahead with its “Back to Starbucks” transformation under CEO Brian Niccol.

In a filing with the Securities and Exchange Commission, the coffee chain said its company-operated North American stores will decline by about 1% in fiscal 2025, a net reduction that reflects both openings and closures. Analysts at TD Cowen estimate that translates to about 500 gross closures.

As part of the overhaul, roughly 900 nonretail employees will be laid off on Friday. Starbucks expects about 90% of the $1 billion restructuring cost to stem from its North American operations, including an estimated $150 million in employee separation costs and $850 million tied to store closures. Most of the expenses will be recorded in fiscal 2025.

The company projects it will end the fiscal year with nearly 18,300 North American locations, including both company-operated and licensed cafes, and plans to resume expansion in fiscal 2026.