Starbucks announces more layoffs, plans to close 1% of North America stores

Core Insights - Starbucks plans to close approximately 1% of its North America stores, equating to around 185 cafes, as part of a strategy to reduce headcount and expenses [1][2] - The company aims to maintain a focus on long-term growth while managing costs, with a commitment to investing in partner hours, customer service, and store innovations [2][4] - The closures are part of a more significant action, resulting in a total of 18,300 stores remaining in the U.S. and Canada by the end of the fiscal year [2][3] Store Closures - The decision to close specific coffeehouses is based on an inability to create the desired physical environment or a lack of financial performance potential [3] - Baristas from affected stores will be transferred to nearby locations where feasible, with severance packages offered for those unable to relocate [3][4] Corporate Layoffs - Starbucks will be laying off additional corporate employees, following a previous reduction of 1,100 roles in February [1] - Affected corporate employees will receive generous severance and support packages, including benefits extensions [4] Future Plans - The company is planning renovations and growth for over 1,000 North America locations by 2026 [4] - Early results from recent store uplifts indicate increased customer visits, longer stays, and positive feedback [5]