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

Core Insights - The company is undergoing significant changes to enhance customer experience and financial performance, including the closure of underperforming stores [1][6][11] - A new executive team has been appointed to drive these changes, with key members having prior experience with the company [2] - The company is committed to investing in its coffeehouses and improving the overall atmosphere and service quality [4][9][12] Store Closures - The company has identified specific coffeehouses that do not meet customer expectations or financial viability, leading to their closure [6][7] - Despite these closures, the overall number of company-operated locations in North America is expected to decline by about 1% in fiscal year 2025, after accounting for new openings [8] - The total number of Starbucks locations in the U.S. and Canada is projected to be nearly 18,300 by the end of the fiscal year [9] Workforce Changes - Approximately 900 non-retail partner roles will be eliminated as part of cost management efforts [11][12] - The company is focused on providing support and severance packages for affected employees, with a goal of potentially rehiring them in the future [10][12] - The company is also increasing the number of partners in stores to enhance customer service and operational efficiency [14] Future Plans - The company plans to uplift over 1,000 locations in the next 12 months to improve design and customer experience [9] - Early results from recent investments in coffeehouse improvements indicate increased customer visits and satisfaction [14] - The company aims to build a stronger and more resilient brand while creating more opportunities for partners and communities [15]