Starbucks Plans 900 Job Cuts, Store Closures With $1 Billion Restructuring Charges
The coffee chain announced that its board has approved a restructuring plan that will close select company-operated locations and reduce non-retail headcount under its “Back to Starbucks” turnaround strategy.
Starbucks (SBUX) announced on Thursday that it’s cutting roughly 900 corporate jobs and closing underperforming North American stores as part of a sweeping cost-reduction and reinvestment plan aimed at reviving its cafes.
In an 8-K filing on Thursday, the coffee chain stated that its board has approved a restructuring plan that will close select company-operated locations and reduce non-retail headcount under its “Back to Starbucks” turnaround strategy. The company expects to book about $1 billion in related charges, with about 90% tied to its North American operations, and plans to complete most closures by the end of fiscal 2025.
“During the review, we identified coffeehouses where we’re unable to create the physical environment our customers and partners expect, or where we don’t see a path to financial performance, and these locations will be closed,” said CEO Brian Niccol in a letter to shareholders.
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