Starbucks to cut 900 jobs and close dozens of North American stores as sales struggle

Core Viewpoint - Starbucks is implementing a $1 billion restructuring plan that includes laying off approximately 900 staff and closing around 100 cafes in North America to address declining sales and improve its business performance [1][2][4]. Group 1: Restructuring Details - The restructuring will affect 900 employees in "non-retail" roles and will result in the closure of 1% of Starbucks' coffee houses in North America [2]. - The company previously eliminated 1,100 corporate positions earlier this year and will also close many open or vacant positions [1][2]. - The restructuring costs are primarily attributed to the North American business, with $150 million expected in employee separation costs and $850 million related to store closures [4]. Group 2: Business Performance - Starbucks has experienced a decline in US sales for six consecutive quarters, attributed to consumers being cautious about spending amid prolonged inflation [2]. - The CEO emphasized that the restructuring is necessary to reinforce successful strategies and build a stronger, more resilient company [3]. Group 3: Union Relations - Over 650 Starbucks stores in the US have unionized, with ongoing negotiations for a first union contract facing challenges [5]. - The union has criticized the company's restructuring efforts and threatened further strikes to push for a contract [6]. - The CEO did not address union organizing efforts in his communication, despite the ongoing tensions [5].