Starbucks is closing stores primarily as part of a $1 billion restructuring plan led by CEO Brian Niccol. The company plans to shut down about 1% of its North American outlets, roughly around 400 to 500 locations, and lay off about 900 corporate staff. These closures focus on underperforming stores that cannot provide the physical environment customers and partners expect or are not financially viable. The decision comes amid ongoing challenges like declining sales over six consecutive quarters, increased competition, rising inflation, and changes in consumer behavior, including migration away from urban centers due to the Covid-19 pandemic. The restructuring aims to improve operational efficiency by closing less successful stores, investing in refurbishing existing locations, hiring more baristas, and enhancing customer experience, with plans to resume expansion in the near future.