On September 24, 2026, Starbucks announced plans to close approximately 250 stores across North America. While the company did not release a list of Canadian closures, a subsequent investigation by 6ix Retail identified at least 37 affected locations across Canada, including 12 in Ontario.
According to an October 3, 2026 report by Money.ca, the closures included both long-established and recently opened Starbucks locations in Toronto, Vancouver and other Canadian cities.
The closures follow significant workforce reductions in 2025. In September 2025, Starbucks announced plans to eliminate approximately 900 corporate positions and close additional North American stores. According to Reuters, the company’s US$1 billion restructuring plan included severance payments, lease exits and store closure costs.
These measures followed an earlier announcement on February 24, 2025, when Starbucks revealed plans to eliminate approximately 1,100 corporate positions globally as part of its restructuring efforts, according to Reuters.
For Ontario Starbucks employees who have lost their jobs, these closures and layoffs raise important questions about termination pay, severance entitlements and potential wrongful dismissal claims.
Are Starbucks Store Closures Considered Layoffs or Terminations?
Although store closures and workforce reductions are often described as layoffs, employees who permanently lose their jobs because a Starbucks location closes would generally be considered terminated without cause under Ontario employment law.
A termination without cause occurs when an employer ends an employee’s employment for reasons unrelated to misconduct, such as restructuring, downsizing or the closure of a business location.
Some employees may be offered transfers to other Starbucks locations instead of having their employment terminated. Others may receive termination notices or severance packages.
Employees whose positions have been eliminated should understand the distinction between a temporary layoff and a permanent termination, as different legal rights and obligations may apply.
Severance Pay for Terminated Starbucks Employees
If your employment with Starbucks has been terminated because of a store closure or corporate restructuring, you may be entitled to termination pay, statutory severance pay and potentially additional compensation under common law.
Under Ontario’s Employment Standards Act, 2000, eligible employees are entitled to minimum notice of termination or pay in lieu of notice. Statutory severance pay is a separate entitlement available to employees who meet specific eligibility requirements.
Generally, statutory severance pay may be available to employees with at least five years of service where the employer meets the applicable payroll or mass-termination conditions. The amount is primarily based on length of service and regular wages.
Employees may also be entitled to common law reasonable notice, depending on their employment contracts and individual circumstances.
Factors that may influence common law reasonable notice include:
- Length of service: Employees with longer service may be entitled to longer notice periods.
- Age: An employee’s age may be relevant when determining reasonable notice.
- Position held: An employee’s role, responsibilities and level of seniority may affect their entitlement.
- Availability of comparable employment: The difficulty of finding similar work may influence the appropriate notice period.
Employers may offer only the minimum compensation required under employment standards legislation, even where an employee may have greater entitlements under common law.
Employees should carefully review any severance package before signing a release or accepting a final settlement.
Wondering what you may be owed? Use our Ontario Severance Pay Calculator to estimate your potential entitlement based on your age, length of service and position.
What if Starbucks Offers a Transfer to Another Location?
Starbucks employees affected by store closures may be offered employment at another location rather than having their positions terminated.
Whether an employee is required to accept a transfer depends on the circumstances, including their employment agreement, the proposed work location, commuting distance, compensation and job responsibilities.
A significant unilateral change to an employee’s employment conditions may amount to constructive dismissal in certain circumstances.
However, refusing a reasonable offer of comparable employment may affect an employee’s entitlement to termination or severance compensation.
Employees should consider obtaining legal advice before rejecting a transfer, resigning or agreeing to significant changes to their employment conditions.
Employee Rights Following Starbucks Store Closures
Employees whose jobs have been eliminated because of Starbucks store closures should review their termination notices and severance offers to determine whether their legal entitlements have been met.
Potential employment law concerns include:
- Insufficient termination notice: Employees may not receive the notice or pay in lieu of notice required by law.
- Inadequate severance offers: An initial severance package may not reflect an employee’s full legal entitlements.
- Improper temporary layoffs: An employer may not always have the contractual or legal authority to temporarily lay off an employee.
- Significant changes to employment: Changes to compensation, responsibilities or work location may raise constructive dismissal concerns.
Employees should also understand that the closure of a business location does not automatically eliminate an employer’s obligations to provide termination notice, termination pay or statutory severance pay where required.
Wrongful Dismissal Following Starbucks Store Closures
In Ontario, employers can generally terminate employees without cause for legitimate business reasons, including restructuring and permanent store closures, provided they meet their legal obligations.
However, employees who are terminated without adequate notice or compensation may have grounds for a wrongful dismissal claim.
Potential claims may arise where:
- An employee receives less notice or compensation than legally required.
- An employment agreement does not validly limit the employee’s termination entitlements.
- An employer imposes substantial changes to employment conditions that amount to constructive dismissal.
Employees may also have separate legal claims if their termination involves discrimination, reprisal or violations of applicable employment legislation.
A wrongful dismissal claim may allow an employee to recover additional compensation beyond the amount initially offered, depending on their circumstances.
How Monkhouse Law Can Help Starbucks Employees
At Monkhouse Law, our employment lawyers assist Ontario employees affected by layoffs, corporate restructuring and terminations without cause.
We help employees understand their rights, review severance packages and determine whether additional compensation may be available.
Our services include:
- Free 30-minute phone consultations to discuss termination and severance concerns.
- Severance package reviews to assess potential employment law entitlements.
- Negotiation services to pursue appropriate compensation.
- Representation in wrongful dismissal claims where an employer has not met its legal obligations.
Contact Monkhouse Law for a Free Consultation
If you have lost your job because of a Starbucks store closure or corporate restructuring, you may be entitled to more compensation than your employer initially offers.
Before signing a severance agreement or accepting significant changes to your employment, it is important to understand your legal rights.
Contact Monkhouse Law Employment Lawyers for a free 30-minute phone consultation to discuss your situation.