Starbucks transforms: Store closures and job cuts as part of the strategy

Starbucks is initiating a comprehensive restructuring wave in North America and plans to close around 1% of its locations, which equates to approximately 150 to 200 stores. As part of these measures, about 900 positions will also be eliminated. These steps are part of the 'Back to Starbucks' strategy, initiated under the leadership of CEO Brian Niccol. Niccol, the former CEO of Chipotle, views the restructuring as an opportunity to enhance the physical environment in the remaining stores and ensure financial success. Employees affected by the closures have been informed about the possibility of transferring to nearby locations. As part of the announced changes, Starbucks will particularly invest in increased hours for its employees and innovative café designs to promote long-term growth. The measures include upgrading more than 1,000 stores to create a more inviting atmosphere that encourages customers to stay longer and return more frequently. In May, 1,200 Starbucks employees had already gone on strike against a new dress code; recently, class-action lawsuits were filed in Illinois and Colorado. Despite the challenges, Starbucks recorded a 3.8 percent increase in revenue to $9.5 billion in the last quarter.