Starbucks to close underperforming stores, cut jobs in latest restructuring

Starbucks said on Thursday it has approved a restructuring plan to close underperforming coffee houses in North America, and cut some jobs as the company looks to revive sales and profits under chief executive Brian Niccol.

The company has been overhauling its operations in the United States, centered around Niccol's plan to bring back a coffeehouse environment at its stores by introducing ceramic mugs, comfortable seating and reduced wait times.

"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," Niccol said in a letter to employees.

Starbucks would also cut about 900 jobs in its support teams and close many open positions, he added.

The company expects to incur about US$1 billion (HK$7.8 billion) in costs under the restructuring plan, it said in a regulatory filing.

Reuters