Starbucks has announced plans to eliminate approximately 900 jobs and close underperforming stores in the United States and some in the United Kingdom as part of a strategic cost-saving initiative. The majority of the closures will occur in North America, where the company’s CEO, Brian Niccol, stated that the restructure aims to reduce customer wait times and enhance sales performance.
This decision follows an earlier announcement in February, when Starbucks revealed it would cut 1,100 jobs and simplify its menu in the U.S. to address declining sales. Niccol acknowledged that these actions would significantly impact employees and customers but emphasized that Starbucks is still committed to opening 80 new stores in the UK as part of its expansion efforts.
Despite the closures, Starbucks’ EMEA (Europe, Middle East, and Africa) division remains on track to meet its goal of opening 80 new locations in the UK and an additional 150 across the EMEA region within the current financial year. However, some stores in the UK, Switzerland, and Austria will close due to a portfolio review.
In a letter to employees, Niccol mentioned that the stores identified for closure failed to create the desired environment for customers and employees, or did not show a viable path to financial success. The job reductions will primarily affect support teams, rather than front-of-house baristas, indicating a focus on restructuring behind-the-scenes operations.
Source: https://www.bbc.com/news/articles/cr4qdg2x4r4o?at_medium=RSS&at_campaign=rss