Daijiworld Media Network – Seattle

Seattle, Sep 26: Global coffee giant Starbucks has announced plans to lay off approximately 900 non-retail employees and close several stores in the US and Canada as part of a strategic turnaround effort. The company will notify impacted employees early Friday, with store closures to follow in the coming days.

In a letter to employees, CEO Brian Niccol explained that a review of Starbucks locations revealed many were underperforming financially or failing to meet customer expectations. “Each year, we open and close coffeehouses for a variety of reasons, from financial performance to lease expirations. This is a more significant action that we understand will impact partners and customers. Our coffeehouses are centres of the community, and closing any location is difficult,” Niccol wrote.

Starbucks expects to end its fiscal year with 18,300 stores in North America, down 124 from last year, marking a rare reduction in store count during a fiscal year.

Niccol, a turnaround specialist who joined Starbucks a year ago, previously led Chipotle, where he nearly doubled revenue and profit during his six-year tenure.

The company assured that affected employees will receive severance and support packages, highlighting Starbucks’ commitment to assisting its workforce during this transition.

This move underscores Starbucks’ focus on streamlining operations and allocating resources strategically to strengthen performance amid challenging market conditions.