Starbucks Faces Major Shakeup: 900 Layoffs and Store Closures

Starbucks is undertaking a significant restructuring effort, resulting in the layoff of approximately 900 non-retail employees and the closure of some store locations in the US and Canada. The Seattle-based coffee chain aims to redeploy its resources towards a strategic turnaround.

CEO Brian Niccol, in a letter to employees, noted that an internal review identified numerous stores that were either underperforming financially or failing to deliver the customer experience that the brand aspires to. The closures are part of a broader strategy to strengthen the company's financial health and community engagement.

As the fiscal year concludes, Starbucks anticipates operating 18,300 stores in North America, reflecting a reduction of 124 stores from the previous year. The company expressed its commitment to supporting impacted employees with severance and support packages. This move marks a rare contraction for the coffee giant under Niccol's leadership, who is renowned for successfully revitalizing Chipotle.

(With inputs from agencies.)