Starbucks to shutter stores and shed 900 jobs in restructuring drive

Core Insights - Starbucks is implementing a restructuring plan that includes closing stores and cutting 900 non-retail jobs to enhance operational efficiency and improve customer experience [1][2] - The company anticipates $1 billion in costs associated with store closures and organizational restructuring, with a significant portion impacting the North American market [3][4] Store Closures and Job Cuts - The closures are a result of a review identifying locations that do not meet customer expectations or financial performance criteria [2] - Affected employees will receive generous severance and support packages, including benefits extensions [2] Financial Projections - Starbucks expects to complete most store closures by the end of the 2025/26 fiscal year, with a projected reduction of 1% in company-operated stores in North America [3][4] - The restructuring costs include $150 million for severance, $400 million for store asset disposal and impairment, and $450 million for lease-related expenses [3] Store Operations and Strategy - By September 2026, over 1,000 stores will be refurbished to enhance customer experience [5] - The company plans to phase out its pickup-only store format and is developing a small-format store concept in New York City [5] Financial Performance - For the third quarter of fiscal 2025, Starbucks reported net earnings of $558.3 million, a 47% decrease year-on-year, with global comparable store sales down by 2% [6]