Starbucks plans extensive cost cuts and restructuring

The popular coffeehouse chain Starbucks has announced, as part of its ongoing restructuring plan, that it will cut 900 positions in the corporate sector and close an undisclosed number of locations in North America. According to the company, these actions are expected to cost approximately one billion dollars for severance packages, lease agreements, and closure costs. All affected employees were instructed to work from home until the end of the week, with the comprehensive layoffs planned for Friday. CEO Brian Niccol explained that these steps are necessary to strengthen the areas that are already performing well and to prioritize resources there. The realignment under Niccol's leadership aims to increase profitability and make Starbucks once again an integral part of customers' daily lives. In addition to the layoffs, numerous open and unfilled positions will also be eliminated. The upcoming changes are part of a large-scale transformation of over 1,000 Starbucks locations, set to be implemented by the end of 2026. This includes modifications such as more wood paneling and softer lighting to create an inviting atmosphere—essentially a living room outside the home. Locations deemed unsuitable for these modernizations will be closed, with no specific numbers or locations disclosed. Niccol emphasized that this year, the number of company-owned locations will decrease by about 1%, even considering new openings. Starbucks is grappling with declining sales in comparable stores for six consecutive quarters. In an effort to win back customers, the company has implemented a series of changes, including handwriting on cups and offering free refills for certain on-site orders. Some menu items have also been removed to speed up service. The return of milk and sugar stations is intended to give customers more freedom in preparing their coffee and ease the work of baristas, resulting in shorter wait times.