Starbucks Workers Threaten Major Strike on Red Cup Day
Starbucks is bracing for a high-profile showdown with its unionized workforce as thousands of baristas threaten to strike on November 13—coinciding with the company’s annual Red Cup Day, a major holiday promotion. The union, Starbucks Workers United, announced that
92% of its members voted to authorize the strike if a contract isn’t finalized by that date. The group represents over 9,500 baristas across 550 cafes, a fraction of Starbucks’ 200,000 North American employees, but enough to disrupt operations in at least 25 major cities, with more stores potentially joining if negotiations stall.
Union leaders are demanding better pay, more flexible hours, and additional compensation for working during peak times and promotional events. Starbucks, for its part, claims the union’s wage proposals are excessive, with CEO Brian Niccol calling the demands “unreasonable.” The company says it remains open to negotiations, but the two sides remain far apart after months of stalled talks.
900 Layoffs and Store Closures as Starbucks Restructures
In a separate bombshell, Starbucks announced it will lay off 900 non-retail employees and close a number of stores across North America as part of a sweeping
$1 billion restructuring plan. The move comes after six consecutive quarters of declining same-store sales, as inflation and changing consumer habits have taken a toll on the coffee giant’s bottom line.
CEO Brian Niccol told employees that the closures will reduce Starbucks’ North American footprint by about
1% this fiscal year, even as some new stores open. The company expects to end 2025 with 18,300 locations in the U.S. and Canada. Starbucks says it will try to relocate affected workers to other stores, but promises “comprehensive severance” for those who cannot be placed elsewhere.
Starbucks Bets Big on China Amid Domestic Challenges
While facing headwinds in North America, Starbucks is doubling down on international growth. On November 3, the company announced a new joint venture with Boyu Capital to accelerate its expansion in China, one of its fastest-growing markets. Details of the deal are still emerging, but the move signals Starbucks’ intent to offset sluggish U.S. sales with aggressive overseas investment.
What This Means for Starbucks Customers and Investors
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Customers may experience disruptions, especially on Red Cup Day, if the strike proceeds. Store closures could also affect local communities, though Starbucks aims to minimize the impact by relocating staff.
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Employees face uncertainty, with layoffs and ongoing labor disputes clouding the outlook for job security and workplace conditions.
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Investors have seen Starbucks shares react modestly to the news, but the company’s long-term strategy—balancing cost-cutting at home with growth abroad—will be closely watched.
The Road Ahead
Starbucks is at a crossroads: Can it resolve labor tensions, adapt to shifting consumer trends, and reignite growth? The coming weeks will be critical, with the potential strike and restructuring efforts likely to shape the company’s trajectory well into 2026.
Sources
1. Starbucks unionized workers say they'll strike on Nov. 13 if coffee ...
2. Starbucks to lay off 900 workers, close stores in North America
3. Starbucks Coffee Company - Financial Releases
