Starbucks is set to cut around 900 positions among non-retail employees and shutter some of its stores in the U.S. and Canada as it shifts focus toward revitalizing the company.
The Seattle-based coffee chain will inform affected employees of the job cuts early Friday and intends to close an unspecified number of locations across North America in the imminent future.
A review of various Starbucks outlets indicated that numerous sites are underperforming financially or failing to deliver the customer experience expected, as highlighted in a Thursday letter by Starbucks CEO Brian Niccol.
“Each year, we open and close stores for several reasons ranging from financial outcomes to lease ends,” Niccol stated. “This current measure is more substantial, and we recognize how it will affect our partners and patrons. Our stores are community hubs, and shutting any of them is a challenging decision.”
Starbucks said Thursday that it expects to end its fiscal year with 18,300 stores in North America, down 124 from last year.
It’s rare for Starbucks to shrink its store count during a fiscal year.
Niccol, known for his expertise in turnaround situations, joined Starbucks about a year ago with the aim of revitalizing the brand. During his tenure as CEO at the struggling Chipotle chain, he notably doubled the company’s revenue and saw impressive gains in profit and stock value.
Starbucks said it will offer severance and support packages for affected employees.
