Starbucks is closing 1,700 stores in the United States.
The US company confirmed the move to the Associated Press news agency.
It said it would make “significant” changes to the way it operates in the US.
Starbucks announced its plan to close the stores last month, saying it needed more time to consider the impact on its US operations.
The company said it was closing the stores for a variety of reasons including the economic downturn.
“We’ve heard that people are not happy with the way the economy has changed and have decided to make changes to better reflect this,” the company said.
Starbucks said the decision to close stores was part of its ongoing “continuing strategy” to focus on improving its customer service and to invest more in its US retail network.
Starbucks has struggled in recent years as the world’s largest coffee retailer has struggled to meet demand for its coffee products.
In the US, the company reported net sales of $2.15bn (£1.85bn) for the year ended March.
The coffee chain had previously reported a loss of $1.2bn in the last fiscal year.
In a statement to Reuters news agency, Starbucks said it plans to “continue to invest in our business through strategic investments that align with the business’s core mission, to serve our customers and our communities.”
The company added that it would be taking the following steps: Closing all 1,800 stores in all 50 states and the District of Columbia.
“This will include closing stores in each of these states and territories,” it said.
Closing 1,200 stores in California.
“While we are not closing stores, we will be working with state and local governments to help them better manage their communities and our stores,” it added.
Closing or reopening all Starbucks stores in more than half of the states and in the District and in all jurisdictions of the US except for California, which is exempt from the closures.
“These actions are part of our ongoing strategy to better understand our business, our stores, and our customers,” it continued.
“Our goal is to make Starbucks a better place to work and play and to be a good neighbour, and we’re doing all of these things with the help of our partners and community partners.”
Starbucks’ US stores are located in major metropolitan areas including Los Angeles, Chicago, San Francisco and Dallas.
The chain has also closed its stores in several smaller cities and towns in California and Arizona.
Starbucks’ U.S. operations are located at 8,000 stores in 27 states and Washington, D.C. The news comes as Starbucks, the world leader in the coffee chain, is under increasing pressure from a backlash from customers and other groups for its low wages.
Starbucks, which has a global workforce of about 4 million people, said it paid $10.5bn in 2015.
Earlier this month, it lost its top executive, Michael Peck, after it was revealed he was paid less than the minimum wage in his role as chief operating officer.
The global coffee giant, which was founded in 1977, has been struggling with declining sales and revenue as the price of its products have fallen and as other retailers have moved away from coffee.
Starbucks recently said it had agreed to pay $10m in compensation to the US government for a whistleblower who said he was sexually harassed at the company’s US headquarters.