Starbucks is taking “significant action” to turn around its struggling business, closing a large number of cafés and announcing a second round of layoffs at its headquarters as part of CEO Brian Niccol’s efforts to resuscitate the troubled chain.
Niccol announced Thursday that Starbucks will close hundreds of stores this month, or about 1% of its locations. The company had 18,734 North American locations at the end of June, and the company said it will end September with 18,300 stores.
The company is underwent a review of its footprint and the affected locations were ones “unable to create the physical environment our customers and partners expect, or where we don’t see a path to financial performance,” Niccol announced.
Also, Starbucks revealed an additional 900 corporate layoffs, in addition to the roughly 1,000 previously announced last February.
The company expects its restructuring efforts will cost $1 billion.
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