Starbucks slashing 900 jobs, closing hundreds of stores in $1B cost-cutting plan

Core Viewpoint - Starbucks is implementing a $1 billion restructuring plan that includes closing underperforming stores in North America and cutting 900 jobs to improve its financial performance and customer experience [1][9]. Group 1: Store Closures and Job Cuts - The company will close stores where it cannot meet customer expectations or achieve financial performance, with the majority of closures expected by the end of the fiscal year, reducing the North American store count by about 1% [3][4]. - The job cuts will primarily affect support teams, and the company will also close many open positions, with approximately 10,000 employees in non-coffee-house roles as of September 29, 2024 [8][11]. Group 2: Sales Performance - Starbucks has experienced six consecutive quarters of sales decline in the US, attributed to changing consumer preferences and increased competition [2][6]. Group 3: Leadership and Strategy - CEO Brian Niccol, who previously led a turnaround at Chipotle, is focusing on investing in store improvements to reduce service times and enhance the coffee-house environment while streamlining management [5][8]. - The company is also investing in technology to improve order sequencing and customer experience [9][11]. Group 4: Financial Outlook - Starbucks anticipates ending the fiscal year with nearly 18,300 locations across the US and Canada, down from 18,734 locations reported in July [4]. - Since Niccol's appointment in August 2024, Starbucks shares have increased by approximately 9% [11].