Starbucks to close stores, lay off workers in $1 billion restructuring plan

Starbucks plans a $1 billion restructuring, closing stores and laying off 900 employees to enhance customer experience amid declining sales.

Starbucks has announced a $1 billion restructuring plan aimed at revitalizing its operations amid declining sales. The plan includes closing several North American coffeehouses and laying off around 900 non-retail employees. This marks the second round of layoffs during CEO Brian Niccol's tenure, following the dismissal of 1,100 corporate workers earlier this year. Starbucks anticipates that 90% of the restructuring costs will be related to its North American business, with significant expenses expected in fiscal 2025. The company plans to end the fiscal year with nearly 18,300 locations and aims to grow its footprint again in fiscal 2026. Niccol emphasized the need to focus on customer experience and operational efficiency, stating that the closures are necessary to create a better environment for customers and partners. The company is also investing in labor standards and enhancing store designs to encourage customer engagement.