Qi Lu Wan Bao·2025-09-26 09:31Core Viewpoint - Starbucks announced a restructuring plan involving the closure of hundreds of stores in North America and Europe, along with the layoff of approximately 900 employees, amid declining sales in its largest market [1] Group 1: Restructuring Plan - The restructuring plan will cost Starbucks $1 billion, which includes $150 million for employee severance and $850 million related to store closures [1] - The decision to close stores is effective immediately, primarily affecting locations in North America [1] - By the end of the fiscal year on September 30, the number of Starbucks stores in North America will be reduced to 18,300 from 18,743 as of June 30 [1] Group 2: Impact on Employees - Approximately 900 non-retail employees will be laid off on September 26, marking the second round of layoffs this year after 1,100 global employees were cut in February [1] Group 3: Sales Performance - North America is Starbucks' largest market, but sales have declined for six consecutive quarters [1] - As of June 29, sales in North America decreased by 2% year-over-year for the third quarter of fiscal 2025 [1] - Analysts attribute the sales decline to increased competition and growing price sensitivity among consumers [1]