Author: Tee Johnson

In a bold move to streamline operations and refocus on core customer experiences, Starbucks Corporation announced Thursday that it will close approximately 1% of its company-operated stores in North America, alongside the elimination of about 900 non-retail positions.

The sweeping changes, part of CEO Brian Niccol’s “Back to Starbucks” transformation plan, are expected to cost the company around $1 billion in restructuring charges, primarily related to lease terminations and employee severance.

The announcement comes as Starbucks grapples with declining sales in its largest market, with U.S. same-store sales dropping for several consecutive quarters amid heightened competition from rivals like Dunkin’ and rising consumer sensitivity to prices.

Niccol, who took the helm last September after a successful tenure at Chipotle, emphasized in a letter to employees that the decisions prioritize investments “closest to the coffeehouse and the customer.”

“During the review, we identified coffeehouses where we’re unable to create the physical environment our customers and partners expect, or where we don’t see a path to financial performance, and these locations will be closed,” Niccol wrote. 

Partners at affected stores will be notified this week, while the 900 impacted non-retail employees—primarily in support roles—will receive formal notices on Friday.

The company pledged “generous severance and support packages,” including extended benefits, to those affected. 

Starbucks currently operates 11,453 company-owned stores in North America as of late June, with a total of 18,424 locations including licensed outlets.

After accounting for new openings over the past year, the net effect of the closures will reduce the company-operated footprint by about 1%, leaving roughly 18,300 total stores across the U.S. and Canada by the end of fiscal year 2025 on September 29. 

While an exact number of closures wasn’t disclosed, analysts estimate 150 to 200 stores could be shuttered, focusing on underperforming or outdated sites unable to deliver the “warm and welcoming” atmosphere Niccol envisions. 

This latest wave builds on earlier actions, including the planned closure of 80 to 90 “Pick Up” stores—mobile-order-only locations introduced in 2019—in over 20 states, with some slated for conversion to traditional coffeehouses.

The company also cut 1,100 corporate roles in February and froze hundreds of open positions as part of ongoing cost-control measures. 

The restructuring expenses break down to approximately $150 million for employee separations, $400 million in asset write-downs, and $450 million tied to lease obligations, with about 90% of costs hitting North America in fiscal 2025.

Despite the immediate pain, Niccol framed the moves as essential for long-term resilience: “I believe these steps are necessary to build a better, stronger, and more resilient Starbucks that deepens its impact on the world and creates more opportunities for our partners, suppliers, and the communities we serve.” 

To offset the closures, Starbucks plans to remodel over 1,000 locations and invest in its “Green Apron Service” initiative, which aims to boost staffing, personalize orders, and incorporate technology for faster service across 11,000 stores.

The company also recently approved a 2% raise for salaried North American employees in August, signaling a commitment to retaining frontline talent. 

Reactions have been mixed. Starbucks’ shares traded flat in premarket following the news, reflecting investor caution amid the sales slump.  Labor advocates, including the union Workers United, criticized the plan sharply.

“This announcement makes it clear things are only going Backwards at Starbucks under Brian Niccol’s leadership,” the group stated in an email to Newsweek.  Ongoing tensions include lawsuits from employees alleging violations of labor laws over unreimbursed dress code costs.

As Starbucks shifts from expansion to optimization—scaling back new store openings in 2025 to fund redesigns—the coffee giant hopes to recapture its status as the go-to spot for quality brews and community vibes.

For now, the focus remains on supporting displaced workers and guiding loyal customers through the transition. Specific closure lists have not been released, but affected locations will shutter by month’s end.

ATLANTA – As Jimmy Kimmel makes his highly anticipated return to late-night television tonight after a nearly weeklong suspension, Atlanta residents will be among the lucky few in the U.S. who can catch the episode live on local ABC airwaves.

While major affiliate groups Sinclair Broadcast Group and Nexstar Media Group have announced plans to preempt the show on their stations nationwide, Atlanta’s ABC affiliate, WSB-TV (Channel 2), owned by Cox Media Group, is not joining the boycott and will air “Jimmy Kimmel Live!” as scheduled.

The Backstory: Suspension and Backlash

The controversy erupted last week when Kimmel’s on-air comments about the fatal shooting of conservative activist Charlie Kirk on Sept. 10 drew sharp criticism.

During his Sept. 16 monologue, Kimmel remarked that the “MAGA gang” was “desperately trying to characterize [suspect Tyler Robinson] as anything other than one of them,” sparking accusations of insensitivity from conservatives, including President Donald Trump and FCC Chair Brendan Carr.

ABC, under parent company Disney, suspended the show indefinitely starting Sept. 17, citing the remarks as “ill-timed and insensitive.”  

The suspension quickly escalated into a broader media feud, with Sinclair – the largest operator of ABC affiliates – and Nexstar announcing they would preempt Kimmel’s return episode tonight, replacing it with news programming or specials.

Good News for Atlanta: WSB-TV Stays the Course

Unlike Sinclair and Nexstar stations, WSB-TV has not indicated any plans to preempt the episode. The station, Atlanta’s longstanding ABC affiliate since 1980, covered the suspension and return in its local news updates without mentioning a local boycott.  
Cox Media Group, WSB-TV’s owner, is independent of the preempting groups and has a history of aligning closely with ABC programming.

Viewers in the Atlanta market can expect “Jimmy Kimmel Live!” to air at its usual time: 11:35 p.m. ET on Channel 2.  Tonight’s guests include actor Glen Powell and musical performer Sarah McLachlan.  For those without cable, the show will also stream live on ABC.com, the ABC app, and Hulu (with a cable login), bypassing local affiliate decisions entirely.  

Broader Implications for Late-Night TV

This affiliate revolt highlights the growing tensions between national networks and local broadcasters, especially amid regulatory pressures from the Trump administration’s FCC.   Critics on the left decry it as censorship, while supporters argue it’s about community standards.  With Kimmel’s contract up in May 2026 and late-night viewership already declining, the incident could reshape the genre’s future

For decades, WSB-TV has been the trusted voice delivering ABC programming to the Peach State’s capital, from breaking news on Peachtree Street to live coverage of the Atlanta Braves’ triumphs. But as media landscapes shift with mergers, acquisitions, and digital disruptions, questions about ownership have bubbled up among viewers. Who exactly holds the reins of Channel 2 today? Our investigation uncovers the layers behind this iconic station.

The Station at a Glance

WSB-TV, broadcasting on virtual channel 2, has been Atlanta’s ABC affiliate since a pivotal switch in 1980, when it traded its NBC affiliation for ABC amid fierce competition from rivals like WXIA-TV. As the flagship of local broadcasting in the South – it claims to be the first TV news operation in the region – WSB-TV dominates ratings with over 47 hours of weekly local newscasts, including weekend midday shows rare among Big Three affiliates. Its studios sit in Midtown Atlanta on West Peachtree Street, shared with a cluster of sister radio stations, and its transmitter beams from the city’s Poncey-Highland neighborhood.

The station’s reach extends beyond TV screens: It powers wsbtv.com, popular news apps, and even syndicates Georgia Bulldogs and Georgia Tech football games via ABC. With a storied legacy dating back to its 1948 sign-on, WSB-TV isn’t just a broadcaster – it’s a cornerstone of Atlanta’s media ecosystem.

Owned by Cox Media Group: A Local Legacy

At its core, WSB-TV is owned by Cox Media Group (CMG), a subsidiary deeply rooted in Atlanta’s business fabric. CMG, which traces its origins to the Cox family’s media empire founded in 1898, has held the station since day one. This local ownership model sets WSB-TV apart; it’s the second-largest ABC affiliate by market size not directly operated by Disney’s ABC Owned Television Stations division, trailing only Dallas’ WFAA.

CMG’s portfolio in Atlanta is robust: WSB-TV shares airwaves and resources with powerhouse radio siblings like WSB (750 AM), the city’s top talk station, and country hitmaker WSRV (97.1 FM). This synergy allows for cross-promotion, from morning radio banter spilling into TV segments to unified severe weather alerts during Georgia’s stormy springs. “Cox’s commitment to Atlanta runs deep – they’re not just owners; they’re investors in our community’s stories,” says media analyst Dr. Elena Ramirez of Emory University’s journalism program.

But CMG itself operates under a more complex umbrella. Since a 2019 restructuring, the group has been majority-controlled by Apollo Global Management, a New York-based private equity giant with over $600 billion in assets. Apollo acquired CMG through a deal valuing the company at $3.1 billion, aiming to streamline operations amid declining ad revenues. Cox Enterprises – the privately held parent, still steered by the Cox family and owners of The Atlanta Journal-Constitution – retains a minority stake, about 37%. This setup allows CMG to blend family heritage with Wall Street muscle, funding tech upgrades like mobile DTV pilots launched in 2011.

Rumors of a Sale? Gray Media Eyes Expansion

Whispers of change have swirled this year, fueled by Atlanta rival Gray Media’s aggressive hometown push. In June 2025, Gray CEO Hilton Howell publicly floated interest in acquiring WSB-TV if Apollo opts to sell, calling it a “storied property” with unmatched ratings clout. Gray, which recently ditched its CBS affiliation on WANF (Channel 46) to launch an independent slate and snag CBS rights for WUPA (Channel 69), is bulking up in its backyard. Owning WSB-TV would vault Gray into ABC territory, potentially reshaping Atlanta’s news wars.

Yet, sources close to CMG dismiss the buzz as speculative. “Apollo’s in it for long-term value, not quick flips,” one industry insider told us off the record.

No formal sale talks have surfaced, and with WSB-TV’s ad rates soaring – buoyed by election cycles and Falcons fever – there’s little incentive to divest. Still, in an era of consolidation, where Nexstar Media Group gobbles up affiliates nationwide, Atlantans wonder: Could Channel 2 soon wave a different flag?

Why It Matters to You

Ownership isn’t just corporate trivia; it shapes what you see. Under CMG, WSB-TV emphasizes hyper-local coverage – think traffic snarls on I-85 or Falcons tailgates at Mercedes-Benz Stadium – over national fluff. A shift to Gray, with its 180-station empire, might amp up syndicated fare, while staying put preserves that Atlanta-first vibe.

As streaming giants like Hulu (ironically, ABC’s digital arm) erode traditional TV, WSB-TV’s future hinges on adapting. For now, tune in at 6 p.m. for the latest: Your ABC in Atlanta remains proudly Cox-owned, with Apollo’s steady hand guiding the ship.

Have thoughts on local media? Email us at news@atlhsppenings. Follow AtlantaFi.com for more on the stories shaping our city.