ToplineStarbucks announced a massive $1 billion restructuring effort, CEO Brian Niccol announced in a letter to employees on Thursday, which will include closing 1% of stores in North America by the end of the fiscal year, cutting about 900 non-retail jobs, and renovating more than 1,000 coffee shops over the next year.The company will also renovate more than 1,000 stores over the next year, CEO Brian Niccol said.Gado via Getty Images ...

Starbucks the job cuts will be in non-retail positions, and many open positions will be closed. ...

: Starbucks is taking what CEO Brian Niccol calls “significant action” to try to turn around its struggling business, announcing a new wave of store closures and corporate layoffs.Starbucks Reveals Hundreds of Store Closures in SeptemberThe coffee chain said on Thursday it will close hundreds of cafés this month, roughly 1% of its locations, as per a report. Starbucks had 18,734 North American stores at the end of June and expects to finish September with 18,300, according to a CNN report. The restructurin ...

Starbucks Will Close Stores And Cut 900 Jobs In $1 Billion Restructuringhttps://t.co/iRNUDjU4gf https://t.co/MUijbvsINC ...

Core Insights - CEO Brian Niccol is entering the second year of his turnaround plan [1] Company Overview - The company is focused on implementing a strategic turnaround plan under the leadership of CEO Brian Niccol [1]

Core Insights - Starbucks is implementing significant cost-cutting measures, including laying off 900 corporate employees and closing an undisclosed number of stores across North America as part of a turnaround plan [1][2] - The company anticipates these actions will incur approximately $1 billion in costs related to severance payments, lease exits, and other store closure expenses [2] - CEO Brian Niccol emphasized that these steps are aimed at reinforcing successful strategies and reallocating resources effectively [2][3] Cost-Cutting Measures - The layoffs will be accompanied by the elimination of many open and unfilled positions [3] - The company is undergoing a major overhaul, with over 1,000 stores being remodeled at an estimated cost of $150,000 per store, aiming to create a more inviting atmosphere [4] - The number of company-operated stores is expected to decline by 1% this year, despite recent openings [4] Store Closures - Stores identified for closure were deemed unsuitable for the planned upgrades or lacking a viable path to financial performance [5] - Specific details regarding the number and locations of the stores to be closed have not been disclosed [4][5] Sales Performance - Starbucks has experienced six consecutive quarters of same-store sales declines [6] - To attract customers back, the company is reinstating pre-pandemic policies, such as hand-writing customer names on cups and offering free refills on certain orders [6] - The return of milk and sugar stations is expected to enhance customer experience and improve service efficiency [7]

Core Viewpoint - Starbucks is implementing a $1 billion restructuring plan that includes closing stores and cutting 900 jobs under the leadership of new CEO Brian Niccol, aiming to transform the business and enhance store attractiveness [1][2] Group 1: Store Closures and Restructuring - The company plans to reduce its total number of stores by 1% by fiscal year 2025, maintaining a total of 18,300 stores in the U.S. and Canada [1] - Starbucks will close underperforming stores identified through a comprehensive evaluation and will focus on developing stores that align with Niccol's strategic vision [1] Group 2: Store Upgrades and Customer Experience - The company intends to expand store operations and renovate an additional 1,000 locations, with initial upgrades showing positive results in customer visit frequency and duration [1] - Niccol's strategy includes optimizing store facilities by increasing seating and adding power outlets to attract customers more frequently and encourage longer stays [1] Group 3: Financial Performance and Market Competition - Despite these adjustments, the financial performance of Starbucks has not shown significant improvement, with the company facing intense competition from smaller coffee chains in key markets like the U.S. and China [2] - Starbucks is working to streamline its menu and reduce drink preparation complexity to shorten customer wait times and introduce new products that cater to changing consumer preferences [2] Group 4: Investor Sentiment and Concerns - While analysts and investors generally support Starbucks' transformation efforts, there are growing concerns regarding the costs and implementation timeline of Niccol's plans, especially as the company's profitability has declined due to significant investments in brand renewal [2]

Starbucks Corp. on Thursday announced it will close stores and eliminate 900 positions as part of a $1 billion restructuring initiative aimed at revitalising the coffee chain under Chief Executive Off... ...

Group 1: Starbucks Incident - A Starbucks employee in Malaysia was accused of insulting a customer, leading to public outrage [1] - The employee has been terminated, and Starbucks issued an apology through its official overseas account [1] - The incident highlights the importance of respect in customer service, as emphasized by the franchise owner, Success Food Group [1] Group 2: JD's Seven Fresh Coffee - JD is launching a low-cost coffee brand, Seven Fresh Coffee, aiming to enter the affordable coffee market with products priced under 10 yuan [2] - The company is recruiting business partners under a light-asset model, where partners provide the location and initial investment while JD manages operations [2] - A unique revenue-sharing mechanism allows partners to earn 5% of each coffee sale, with additional incentives for using their own staff [2][3] Group 3: 7 Fen Tian's Frozen Mango Controversy - The fruit tea brand 7 Fen Tian has been accused of using frozen mangoes with a shelf life of 24 months in its drinks [4] - Customer service confirmed the use of frozen mangoes but did not clarify why fresh mangoes were not used despite their availability [4] Group 4: Tea Baidao Management Change - Sichuan Tea Baidao announced a change in its joint company secretary, with Li Zhongcheng resigning and Zou Xinglong taking over [5][6] - Zou Xinglong brings over 14 years of experience in company secretarial and legal fields, enhancing the company's governance and investor relations [6]

Core Insights - Starbucks is laying off approximately 900 non-retail employees and plans to close an unspecified number of stores in the U.S. and Canada as part of a strategic turnaround effort [1][2] - A review indicated that many Starbucks locations are not meeting financial performance targets or customer expectations, prompting these actions [2] - The company anticipates ending its fiscal year with 18,300 stores in North America, a decrease of 124 stores from the previous year, marking a rare instance of a reduction in store count during a fiscal year [3] Company Strategy - CEO Brian Niccol, known for his turnaround expertise, was brought in to revitalize Starbucks, similar to his successful tenure at Chipotle where he significantly increased revenue and profit [4] - The company will provide severance and support packages for the employees affected by the layoffs [4]