Stunning, Abrupt Shake Shack Restaurant Closures in California Lead to 138 Layoffs

The company has indicated that the layoffs are permanent, although affected workers may apply for positions at other Shake Shack locations.Photo bySubhaan SaleemonUnsplash

Shake Shack has closed six underperforming California locations, leading to 138 layoffs statewide, according to a recent state WARN filing. The closures, which were completed as of Tuesday, include five Southern California restaurants in addition to the Oakland site.

The New York-based burger chain, known for its extensive global footprint of over 400 locations, cited poor performance and sales cannibalization from nearby outlets as reasons for the closures.

In addition to the California closures, Shake Shack is also shutting down two restaurants in Houston and one in Columbus, Ohio, due to similar issues.

The company has indicated that the layoffs are permanent, although affected workers may apply for positions at other Shake Shack locations.