Starbucks announces layoffs and closures

Core Insights - Starbucks plans to close approximately 1% of its North American stores, which translates to around 183 locations, while expecting to end September with 18,300 locations in North America [1][2] - The company is undergoing a transformation plan costing around $1 billion, which includes remodeling over a thousand stores and laying off an additional 900 employees on top of the 1,100 layoffs earlier this year [2] Store Closures and Locations - Starbucks will close about 1% of its North American stores, indicating a strategic reduction in its footprint [1] - The company currently operates more than 40,000 locations globally, with 18,300 in North America expected by the end of September [1] Transformation Plan - The transformation plan under CEO Brian Nickel is valued at $1 billion and aims to revitalize the brand [2] - Part of the plan includes remodeling over a thousand stores to create a more inviting atmosphere with cozier chairs, extra outlets, and warmer colors [1][2] Employment Changes - The company will implement 900 new layoffs, adding to the 1,100 cuts made earlier in the year, reflecting ongoing challenges in the business [2] - These layoffs are part of a broader strategy to address a sales slump in the U.S. market [2] Market Challenges - Starbucks is facing a six-quarter sales slump in the U.S., attributed to a cooling demand for its premium products as consumers become more selective [2] - Increased competition from rivals is also contributing to the challenges faced by the company [2]