Starbucks closes hundreds of stores and cuts about 900 jobs
The closures will target stores where the company says it "cannot create the physical environment its customers and partners expect" or where it does not "see a path to financial results."
Starbucks store-File Image.
Starbucks announced Thursday a major restructuring plan that includes closing hundreds of stores and a second round of corporate layoffs this year.
In United States and Canada there are about 18,734 stores and roughly 1% of them, around 400 locations, are expected to close by the end of September. These closures will affect shops that do not meet customer expectations or lack financial viability.
The closures will target stores where Starbucks says it "cannot create the physical environment its customers and partners expect" or where it does not "see a path to financial results," the company said in a statement.
Hundreds of corporate layoffs
The company is also expected to cut another 900 jobs, after laying off 1,100 employees earlier this year. The layoffs will not affect baristas or store staff.
"We are further reducing staff andnon-retail expenses. This includes the difficult decision to eliminate approximately 900 current non-retail associate positions and close many vacant positions," the statement read.
A new look for Starbucks
Despite the cuts, over a one-year period, Starbucks plans to remodel more than 1,000 stores to encourage customers to spend more time inside its coffee shops.
"Over the next 12 months, we also plan to renovate more than 1,000 stores to introduce greater texture, warmth and layered design."
"I know these decisions impact our associates and their families, and we do not take them lightly," company CEO Brian Niccol wrote. "I believe these steps are necessary to build a better, stronger and more resilient Starbucks that deepens its impact on the world and creates more opportunities for our partners, suppliersand the communities we serve."
Health Secretary Robert F. Kennedy Jr. met with Brian Niccol to discuss MAHA menu plans
In his message, the health secretary shared details of the meeting, noting that Niccol presented Starbucks’ plans to expand its menu options as part of the “MAHA” initiative.
"Yesterday I met with @Starbucks CEO Brian Niccol, who shared the company's plans to expand the MAHA menu. I was pleased to learn that Starbucks foods and beverages already avoid artificial colors and flavors, high fructose corn syrup, artificial sweeteners and other additives," said Kennedy.
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