Starbucks Plans Strategic Adjustments to Secure Future Growth

Starbucks has announced plans to close some unprofitable locations and cut jobs at its corporate headquarters. This is part of CEO Brian Niccol's comprehensive strategy to steer the company back to success. In a letter to employees, it was communicated that up to 900 non-essential positions are to be eliminated. These employees will receive support and severance packages, including extended benefits. Brian Niccol emphasizes that careful cost control and focus on growth areas remain crucial. Earlier in the year, 1,100 jobs were cut, with the saved funds to be invested in new customer service staff and innovative café designs. Niccol also confirmed new requirements for office employees, who must work in the office four days a week starting September 30. On the anniversary of his takeover, Niccol describes the ongoing challenges the company faces. The current quarterly figures show the sixth consecutive decline in sales for U.S. stores. Although a 2% decline is recorded, it is below the expectations of analysts who had anticipated a steeper drop. Starbucks will reduce its store network in both Canada and the U.S. by about 1% and plans to operate around 18,300 locations by the end of the fiscal year. The planned investment in 1,000 stores aims to revive the classic coffeehouse character by moving away from models focused on takeout. New construction measures will reduce building costs by about 30%, and a new store concept with 32 seats and a drive-through is planned for the fiscal year 2026.