Many big American retail chains have faced major challenges in the year 2025. With consumers’ behaviors changing, tariffs increasing, and more competition from internet shopping, these companies are having to shut stores and lay off workers. Below you will find 19 major companies that have made significant changes to their workforce this year.
1. Joann Fabrics
Joann Fabrics officially closed down all of its stores last May 2025. The bankruptcy of Joann Fabric is due in part to obstacles in the supply chain and competition from internet stores. As a result of the company’s closing, many workers are now out of work across the United States.
2. Walgreens
Walgreens anticipates closing down 1200 stores over the next three years, with 500 expected to be closed by the end of this year. Closures result from fewer people shopping in stores, higher costs for pharmacies, and increased competition from online businesses and big chain stores.
3. JCPenney
Last May 25, JCPenney closed 7 stores as it concentrated its efforts on stores doing well, since shoppers have begun to rely on online platforms and save money. Because of these changes, the company stays ahead and fulfills obligations to customers at stores that remain open and on its website.
4. Macy’s
Macy’s is planning to close 66 stores this year as part of an overall plan to shut 150 stores by 2026. The famous department store is keeping up with shifting trends in shopping by using e-commerce and adapting its services to suit its customers while also trying to be more efficient.
5. Family Dollar
As part of a revamp, Family Dollar will close 370 of its stores this year. The company is also working to make their best-selling stores even more profitable so it can adapt to costlier living standards and competition in the discount retail market, which has changed due to customer trends.
6. Dollar Tree
In order to reorganize, Family Dollar has decided to shut down 370 stores this year. The business is working towards increasing profits by focusing on its top stores and adjusting to the higher costs and competition in the discount retail industry, affecting customer shopping habits.
7. Party City
All Party City stores closed earlier this year due to bankruptcy. In spite of the company’s attempts to succeed, its increasing financial troubles came from inflation and strong online competition. The company is working on improving its store network and the types of products that match the current demands.
8. Big Lots
As a part of their restructuring effort, Big Lots is shutting down nearly 500 stores to adjust to new financial and consumer trends. To succeed in a tough market, the closeout retailer is working on reducing the number of their stores and refreshing their selection of products.
9. Kohl’s
Kohl’s is closing 27 stores this year and will continue to run more than 1,100 locations. The company aims to optimize their real estate and boost profits by putting more attention on major markets and adjusting to the rising popularity of online purchasing.
10. Rite Aid
As Rite Aid goes through bankruptcy and faces tough competition in pharmacy, the company is shutting down 47 stores this year. In order to cut expenditures and improve their efficiency, the company is revising their operations because online pharmacies and major stores are adding pharmacy services.
11. McDonald’s CosMC
McDonald’s is closing all five of their CosMC small-format beverage stores launched in 2023 after the concept failed to generate sufficient sales. Because the company wants to focus on their competitive main restaurant business, it felt it was best to cease the brand.
12. Walmart
Walmart is silently cutting jobs to increase how efficiently it operates and fight competition from online shops. Changes are underway to make operations automated and better manage the supply chain so the company can handle new needs and save money throughout the network.
13. Amazon
Because of slow growth and shifting trends among consumers, Amazon has put their retail hiring on hold and let go of workers in different departments. To manage costs in a competitive market, the company is guiding their team to focus on future areas such as cloud computing, artificial intelligence, and automating logistics.
14. Starbucks
Starbucks is cutting 1,100 corporate workers, which the coffee chain says it needs to do in order to become leaner and better adapt to consumer demands. Starbucks is adjusting their business model in order to adapt to new market conditions and to still be profitable in these difficult economic times.
15. UPS
UPS has announced it will cut its workforce by 20,000 to make deliveries more automated and adjust to logistics changes. They are working on saving costs and improving their efficiency when there are changes in what’s delivered and what customers expect.
16. Nike
Nike cut their workforce in the headquarters by over 700 employees due to a restructuring that aimed to improve operations and focus more on its main markets. As consumers and the global economy change, the company is aiming to become more efficient and apply new solutions.
17. Tesla
Tesla is making the decision to reduce its workforce by around 10% to streamline expenses and improve efficiency before approaching the next stage of the company’s development. Tesla is mainly working on boosting operations while preparing their vehicles for the competition that lies ahead.
18. Cisco Systems
Cisco is eliminating roughly 5% of its workforce, approximately 4,000 jobs, as it seeks to navigate current economic uncertainty and focus on growth in areas like cybersecurity and cloud networking. The restructuring is intended to bolster profitability and realign resources with new technology trends.
19. Best Buy
Best Buy said they’re hoping to cut down 400 corporate jobs this fiscal year to streamline their operations and to emphasize their e-commerce activities. By leaning further into digital and running their operations better, the company is adapting to how people are shopping today.
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