That’s the way the cupcake crumbles.

Sprinkles, the iconic California cupcake company, has announced a “winding down”of operations at its remaining 15 retail locations, blindsiding employees last minute with the not-so-sweet news.

Salty employees got the notice on Dec. 30, saying Sprinkles would start an “orderly wind-down” of the company beginning Dec. 31.

Sprinkles cupcake company has announced it’s “winding down” operations at fourteen locations.

Employees were shocked and took to social media to lament the sudden announcement.

Below a comment on the Sprinkle Instagram account saying, “Ring in the New Year with Style! Enjoy our NYE Dozen,” were a flurry of comments from disgruntled employees.

“Cupcakes are sweet. One-day layoff notices are not. Yikes, what a bold way to celebrate 20 years and ring in the new year,” one comment said.

“One day notice is crazy. Just used us for the holidays then tossed us aside,” said another comment with 108 likes.

“Fr like a day notice is wild work! Some of us have things to pay for and aren’t a multi million dollar company that couldn’t care less abt their employees!” Added another.

“One day notice of losing my job how will I take care of my 5 kids now,” said another comment on the Sprinkles site.

“Thanks for the one day notice of unemployment and no severance!” Another employee added.

Founder Candace Nelson opened her first Sprinkles shop in Beverly Hills in 2005 — catapulting the simple cupcake to a viral trend, which reached a fever pitch when she introduced the cupcake ATM in 2012.

Founder Candace Nelson opened her first Sprinkles shop in Beverly Hills in 2005 — catapulting the simple cupcake to a viral trend, and introduced the cupcake ATM in 2012. David Buchan for NY Post
David Thompson (RedThink Media).
310-484-4952
davidthompsonla@gmail.comMike Stotts

Employees were shocked and took to social media to lament the sudden announcement. Stefanie Keenan

The company was an instant sensation.

Just eight months after opening, Barbra Streisand sent a box of Sprinkles cupcakes to Oprah Winfrey, who instantly endorsed the cupcake company on her show.

Blocks-long lines formed outside the modern, minimalist shops slinging cupcakes that promised high-quality ingredients packed into an Instagrammable colorful cake-for-one.

Need West Coast news? The California Post is coming soon.

Get in early. Sign up for our weekly newsletter before our 2026 launch.

Thanks for signing up!

The cupcake ATMs created even more hubbub, as sweets-lovers flocked to magical cupcake machines that dispensed a sugary treat right there in the street.

The company was also featured on NBC’s Today Show and often featured in magazines, especially when Tom Cruise and Katie Holmes gifted the sweets to friends — a signature of the much-followed but ill-fated marriage.

Employees were shocked and took to social media to lament the sudden announcement. David Buchan for NY Post
David Thompson (RedThink Media).
310-484-4952
davidthompsonla@gmail.comMike Stotts

The blow-out success of the company paved the way for celebrity bakers and famous bake shops that sprung from Sprinkle’s success — like Baked by Melissa, Crumbs Bake Shop and Georgetown Cupcake.

Nelson sold the company to a private equity firm in 2014 and has had no involvement since.

She took to Instagram Wednesday to share her complicated feelings after finding out just a few days ago that her once-successful brainchild will be “closing its bakery doors today.”

“This isn’t how I thought the story would go. I thought Sprinkles would keep growing and be around forever. I thought it would be my legacy,” Nelson said in the video.

The closure notice cited that the company made the decision to shutter because of “financial conditions due to unforeseen business circumstances.”

The success of Sprinkles paved the way for celebrity bakers and famous bake shops that sprung from its success. David Buchan for NY Post
David Thompson (RedThink Media).
310-484-4952
davidthompsonla@gmail.comMike Stotts

“The wind-down process will be conducted in an orderly manner to address remaining operational obligations and preserve value to the extent practicable,” the notice added.

“I’m deeply grateful to the fans, customers, and community who showed up, celebrated with us, and made Sprinkles part of their traditions – and to the team who made it all happen. I’ll always be proud of what we built, Nelson wrote on Instagram.

“Today, my heart is with the Sprinkles employees,” she added.

Closing locations include: Beverly Hills, Newport Beach, Dallas, Scottsdale, La Jolla, Washington DC, Grove Los Angeles, Downtown Los Angeles, Tampa, Disney Springs, Austin, Plano, Rice Village, Manhattan Beach, and Irvine. Three additional commissary locations in Los Angeles, Las Vegas and Dallas will also shutter, according to the company missive.