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Starbucks announces closures and layoffs as part of a plan to revive the coffee chain
New York.- The American coffee chain Starbucks announced this Thursday that it will close about 400 stores in North America and lay off about 900 employees as part of a $1 billion restructuring plan.
CEO Brian Niccol noted that the stores that will close are those “unable to create the physical environment that our customers and partners expect, or where we do not see a path to financial performance,” according to a letter to employees collected by CNBC.
Starbucks operated 18,734 stores in North America at the end of June and will end September with 18,300, that is, it will close more than 400 in this market, according to Niccol.
The closures will occur next week, and Starbucks predicted that it will grow again and remodel more than 1,000 locations with more comfortable chairs, more plugs, and warmer colors, among other things.
According to the chain, 90% of the restructuring cost will be invested in North America, where it seeks to reverse a fall in sales in its largest market.
As part of the plan, Starbucks announced 900 layoffs not related to retail sales, adding to the 1,100 announced last February, in the largest layoff in its history, due to a drop in sales after the appearance of new competitors.
“I know these decisions affect our partners and their families, and we don’t take them lightly. I believe these steps are necessary to build a better, stronger, and more resilient Starbucks that deepens its impact on the world and generates more opportunities for our partners, suppliers, and the communities we serve,” Niccol also indicated in his letter to the workers.
Niccol joined Starbucks about a year ago with the aim of revitalizing the coffee chain, but the financial results have not materialized, with the shares falling 12% and no improvement in sales.
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