Starbucks is closing more stores and laying off 900 workers

"Starbucks plans to cut another 900 corporate jobs and close some of its stores in the U.S. and Canada, as the coffee chain approaches the one-year mark of its turnaround plan. The company says the number of stores will decline by 1% and it will end the fiscal year with nearly 18,300 Starbucks locations in the U.S. and Canada. That suggests that roughly 200 stores might close. After that, the chain plans to invest in new store openings and renovate more than 1,000 locations."

"New corporate layoffs are a second wave after Starbucks cut 1,100 jobs in February. CEO Brian Niccol has said the cost cuts were needed to redirect more money toward stores, where the company is adding more baristas, speeding up service and upgrading the ambiance. Niccol arrived at Starbucks a year ago from Chipotle, tasked with shaking up the coffee giant that's been losing customers. The chain has reported declining sales for six straight quarters now, as shoppers are choosing either cheaper options or upgrading to fancier shops."

"Niccol's turnaround plan has ordered up big changes: removing almost a third of the menu options, drinks ready in four minutes or less, no upcharges for nondairy milks, a store redesign to encourage people to linger for longer along with ceramic mugs and free refills on coffee or tea for those who decide to stay in the cafe."

Starbucks will cut 900 corporate jobs and close about 200 stores in the U.S. and Canada, reducing locations by roughly 1% to nearly 18,300. The company plans to invest in new store openings and renovate more than 1,000 locations. This follows earlier layoffs of 1,100 employees. The turnaround redirects resources to stores by hiring more baristas, speeding service, upgrading ambiance, and simplifying operations. Changes include removing about a third of menu options, targeting drink preparation under four minutes, eliminating nondairy milk upcharges, and encouraging longer in-store stays with redesigned spaces, ceramic mugs and free refills. Sales have declined for six consecutive quarters.

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