Starbucks plans to close hundreds of stores and lay off close to 1,000 people

Core Points - Starbucks is planning to close hundreds of stores and lay off nearly 1,000 employees as part of a turnaround strategy [1][2] - The restructuring efforts are expected to cost the company $1 billion, which includes $150 million for employee separation benefits and $850 million for store closures and lease exits [5] - The company aims to end its fiscal year with approximately 18,300 stores across the U.S. and Canada, down from 18,734 stores as of June 29 [3][4] Store Closures - The specific number of store closures has not been disclosed, but the company is focusing on locations that lack financial viability or do not meet the desired physical environment [6] - Starbucks intends to create a "warm and welcoming" atmosphere in its stores, which includes adding more comfortable seating and additional outlets [6] Employee Impact - Employees affected by the closures will be notified and may have the option to transfer to nearby locations [7] - This round of layoffs will only impact non-retail employees, following earlier layoffs of over 1,000 corporate employees [2] Financial Performance - In the latest earnings report, Starbucks reported a 2% decrease in North American comparable store sales, while net revenues increased by 2% [8]