Starbucks set to close stores, slash 900 jobs in restructuring plan

Core Insights - Starbucks is implementing a turnaround plan that includes closing unprofitable locations and cutting corporate jobs to improve financial performance [1][2][4] Store Closures and Job Cuts - The company plans to reduce its store count by approximately 1% in Canada and the US this fiscal year, resulting in nearly 18,300 total company-operated and licensed stores by year-end [1] - Starbucks will eliminate 900 non-retail roles and close open positions as part of a $1 billion restructuring effort [2] - Earlier this year, Starbucks laid off 1,100 employees, and the savings from these layoffs will be reinvested into enhancing customer service and store designs [3] Financial Performance - Starbucks reported its sixth consecutive quarterly drop in US same-store sales, with a 2% decline, which was less than the anticipated 2.5% drop [4] - The decline in same-store sales was driven by a 4% decrease in comparable transactions, which was better than Wall Street's expectation of a 4.5% decline [4] Strategic Focus - The company is reassessing its store portfolio, identifying locations that do not meet customer expectations or financial performance criteria for closure [5] - Starbucks plans to invest in 1,000 locations over the next 12 months to enhance the customer experience, moving away from a pick-up-focused model [5] Customer and Employee Reactions - Customers have begun sharing information on social media about local store closures, with some locations closing as soon as the following day [6] - The closure of the Reserve Roastery in Seattle, a unionized location, has garnered significant attention on social media [7]