Starbucks announces plans to cut another 900 jobs and close more stores as its turnaround struggles continue

Core Insights - Starbucks is implementing a turnaround plan that includes closing unprofitable locations and cutting 900 corporate jobs to manage costs and focus on long-term growth [1][2] Group 1: Job Cuts and Corporate Changes - The company plans to eliminate 900 non-retail roles and close open positions, with severance and support packages offered to affected employees [1] - Earlier this year, Starbucks laid off 1,100 employees, and the savings from these layoffs will be reinvested into enhancing customer service by adding more employees [2] - Corporate employees are now required to work in the office four days a week starting in late September [2] Group 2: Store Performance and Strategy - Starbucks reported its sixth consecutive quarterly decline in US same-store sales, with a 2% drop, which was less severe than the anticipated 2.5% decline [3] - The company plans to reduce its store count by approximately 1% in Canada and the US this fiscal year, resulting in nearly 18,300 locations by year-end [4] Group 3: Store Closures and Investments - Locations identified as unable to meet customer expectations or lacking a path to financial performance will be closed [5] - Starbucks intends to invest in 1,000 locations over the next 12 months to enhance the coffeehouse atmosphere, moving away from a pickup-focused experience [5] Group 4: Renovation and New Store Concepts - The company plans small, targeted renovations costing about $150,000 per location to restore seating for patrons [6] - For new locations, Starbucks has reduced build costs by approximately 30% and will introduce a new stand-alone prototype in fiscal 2026 featuring 32 seats and a drive-through [7]