Starbucks Unveils $1B Restructuring Plan: 900 Corporate Positions Axed, Hundreds of Stores to Shut Down
Starbucks has announced a sweeping $1 billion restructuring plan, which includes the elimination of 900 corporate jobs and the closure of approximately 500 stores throughout North America. The coffee behemoth revealed on Thursday that it will decrease its store count by nearly 1%, concluding September with 18,300 outlets as opposed to 18,734 at the end of June.
CEO Brian Niccol characterized these actions as crucial components of the company’s “Back to Starbucks” revival strategy, which is focused on enhancing customer experience and financial performance. This signifies the second wave of substantial layoffs this year, succeeding 1,100 job terminations in February. The company has been grappling with six consecutive quarters of declining same-store sales due to high prices.
Regardless of the closures, Starbucks intends to invest in the renovation of over 1,000 locations and aims to return to growth trajectory in fiscal 2026. This restructuring initiative comes nearly a year after Niccol assumed the role of CEO to resuscitate the floundering coffee chain, although financial results have not yet demonstrated significant progress.
Source: CNBC