Starbucks (SBUX) announced plans to close unprofitable locations and cut corporate jobs as CEO Brian Niccol focuses on the company's turnaround plan. In a letter posted to its blog and sent to employees on Thursday, Niccol shared that the company plans to reduce its store count by roughly 1% in Canada and the US this fiscal year. By year-end, the total company-operated and licensed stores across the US and Canada will be nearly 18,300. As of Q3, there were 18,842 locations in North America. Starbucks wil ...

Key Takeaways SBUX will close underperforming North America's stores, reducing count by about 1% in 2025.The company plans to upgrade 1,000 stores over the next year as it resumes growth in fiscal 2026.SBUX will cut 900 non-retail roles to shift resources toward store operations and customer service.Starbucks Corporation (SBUX) is taking steps to strengthen operations as it enters fiscal 2026. The company aims to improve the coffeehouse experience and deliver consistent customer service, while building a st ...

Core Insights - Starbucks is undergoing a significant restructuring, including layoffs and changes to its corporate structure, as part of its "Back to Starbucks" strategy to reconnect with customer preferences [1][2][4] Financial Overview - The Starbucks board has approved a $1 billion restructuring plan, with approximately 90% of expenses expected to arise from its North American operations, primarily impacting fiscal 2025 [2] - The plan includes the closure of at least 100 North American cafes and remodeling over 1,000 locations, with an anticipated 1% decline in company-operated store count in North America [3] Operational Changes - Starbucks will eliminate around 900 non-retail partner roles and many open positions, with affected employees being notified and offered severance and support packages [3] - The company aims to focus resources closer to customers to enhance coffeehouse experiences and customer service [4] Market Position - Starbucks has faced six consecutive quarters of declining same-store sales, and its market share among Gen Z has decreased from 67% to 61% over the past two years [5] - The company is shifting away from mobile-only "pickup" stores to recreate a "third place" environment, which was key to its previous popularity [4] Leadership and Strategy - The restructuring is led by CEO Brian Niccol and CFO Cathy Smith, both of whom have prior turnaround experience [8] - Smith plans to implement zero-based budgeting to evaluate costs and improve margins, focusing on labor productivity and corporate spending efficiencies [9]

Core Viewpoint - The United Steelworkers union expresses frustration over Starbucks' decision to close the unionized Alder Crossing store in Surrey, B.C., raising concerns about the potential stifling of workers' voices [1][2][3]. Group 1: Store Closure Details - The Alder Crossing location is in a busy retail area and has been a successful store, yet Starbucks has not provided a clear reason for its closure [2]. - The closure is part of a larger plan involving approximately 60 store closures across Canada [3]. Group 2: Union Response - The USW believes the closure is intended to intimidate workers who advocate for their rights and challenge company policies, particularly regarding appearance standards [2][3]. - USW Director Scott Lunny criticized the lack of notice given to employees, stating that they should be negotiating a collective agreement rather than seeking new employment [3][4]. Group 3: Call for Fair Treatment - The USW is urging Starbucks to offer affected workers opportunities at other locations, emphasizing the need for respect and fair treatment for loyal employees [4][5]. - Lunny highlighted the profitability of the Alder Crossing store, questioning the rationale behind its closure unless it is aimed at silencing dissent [5]. Group 4: Union Background - The United Steelworkers union represents 225,000 members across various sectors in Canada and is the largest private-sector union in North America, with a total of 850,000 members [5][6]. - The union is known for advocating for safer workplaces and better working conditions, which attracts thousands of new members each year [6].

It's time to spotlight Starbucks after announcing a significant cuts across its business. Joining us now is Caleb Silver, the editor-inchief at Investopedia. Caleb, we appreciate you being with us to discuss the latest update in Starbucks's restructuring and turnaround plan.But this is a a pretty impressive $1 billion restructuring announcement that they laid out with some major closures. You know, what does this restructuring plan mean, do you think, in the grand scheme of things for Starbucks. Yeah, this ...

Starbucks said Thursday it will close 1% of its stores and lay off 900 corporate workers. Among the closures is its Seattle Reserve Roastery, one of the first unionized locations and a site of past protests. ...

Starbucks is to slow expansion and close underperforming stores. (Photo by Justin Sullivan/Getty Images)Getty ImagesStarbucks is embarking on a sweeping $1 billion restructuring effort aimed at reshaping its North American operations.But the move is set to shutter hundreds of the company’s ubiquitous coffeehouses and cut hundreds of corporate jobs as the company seeks to reignite growth in its largest market.In a regulatory filing Thursday, the Seattle-based coffee giant said it plans to trim its portfolio ...

Cheng Xin / Getty Images Starbucks is closing several U.S. and Canadian locations. Key Takeaways Starbucks is closing dozens of outposts it says won't mesh with a turnaround strategy it launched last September. The company is also laying off 900 white-collar employees so it can cut costs and put resources toward "key areas that drive long-term growth," CEO Brian Niccol said. A year into its turnaround attempt, Starbucks says its strategy won’t work in dozens of its locations—which are now set to clo ...

Starbucks closed its flagship Reserve Roastery in Seattle's Capitol Hill neighborhood, nearly 11 years after the location opened as an ...

Economic Overview - Strong economic data has been reported, with US GDP growing by 3.8% in the second quarter, surpassing economists' expectations, driven by robust consumer spending and fewer imports [5][8] - Jobless claims were lower than expected, indicating a resilient labor market [5][8] - Despite positive economic indicators, major stock indices opened lower, marking a potential third consecutive day of losses, influenced by fears regarding Federal Reserve interest rate cuts [4][5] Starbucks - Starbucks announced layoffs of 900 employees as part of a $1 billion restructuring plan, alongside the closure of 100 stores, which is about 1% of its total store base [10][12] - The company has faced six consecutive quarters of same-store sales declines in the US, indicating ongoing challenges [13][15] - CEO Brian Nickel emphasized the need for a turnaround, focusing on enhancing the in-store experience and addressing competition and inflation challenges [17][18] AI Sector - There is emerging profit-taking in AI stocks like Nvidia and Alphabet, as investors seek new catalysts [9] - Barclays has issued a note comparing the current AI boom to the dot-com bubble, suggesting that while there are risks, the AI sector remains on strong footing for the next 6 to 18 months [26][28] Charles Schwab - Charles Schwab is preparing to enter the crypto space with plans to launch spot crypto trading in early 2026, responding to increased client interest in digital assets [52][54] - The firm has reported that retail investors are more engaged than ever, with trading activity up 30% compared to last year [31][33] - There is a growing demand for fixed income investments among retail clients, as they seek strategies to mitigate reinvestment risks [40][41]