Nan Fang Du Shi Bao·2025-09-26 14:28Core Insights - Starbucks is laying off 900 employees in North America and closing some stores, marking the second round of layoffs in seven months, primarily affecting non-retail positions [1][2][3] - The company is implementing a $1 billion restructuring plan aimed at revitalizing its sales, with a significant portion allocated for store closures and employee severance [2][3] - The CEO, Laxman Narasimhan, has initiated several reforms since taking office, focusing on improving store experience and operational efficiency, which aligns with his previous success at Chipotle [3] Summary by Sections Layoffs and Store Closures - Starbucks will cut 900 positions in North America, with a focus on underperforming stores and non-retail roles [1][2] - The total number of stores in the U.S. and Canada is expected to decrease by approximately 1% by fiscal year 2025 [1] - The company plans to upgrade over 1,000 stores in the next 12 months [1] Restructuring Plan - The $1 billion restructuring plan includes costs for store closures and organizational transformation, with 90% of the funds directed towards North American operations [2] - Approximately $150 million will be allocated for employee severance packages [2] CEO's Strategic Reforms - Since taking over, the CEO has launched the "Return to Starbucks" initiative, emphasizing store experience and streamlined processes [3] - The company is simplifying its menu and enhancing store execution standards to improve customer experience and profitability [3] - The CEO's previous experience at Chipotle, where he significantly increased profits, informs his current strategies at Starbucks [3] Impact on China Operations - The layoffs do not affect Starbucks' operations in China, where store expansion remains a key growth driver [4] - There are ongoing discussions about selling parts of the Chinese business, with potential buyers identified [4]