Starbucks on the Brink of Change: Store Closures and Job Cuts in North America

Starbucks, the renowned coffeehouse chain from Seattle, is partially withdrawing in North America and cutting about 900 positions in the non-operational area. This decision is part of a comprehensive strategy change aimed at refocusing the company's resources and improving its business situation. Affected employees are to be informed early about the job cuts, while an unspecified number of store closures in the North American region are set to be announced in the coming days. The coffee chain is compelled to close some stores due to insufficient financial performance or a lack of customer environment. In a statement from CEO Brian Niccol, it is mentioned that the annual review of Starbucks locations revealed that many do not meet the expected standard. Niccol, who has been with Starbucks for a year, is entrusted with the task of realigning the brand. His expertise as a turnaround specialist had already proven to be highly successful at Chipotle. Despite the store closures, Starbucks will end the fiscal year with around 18,300 locations in North America, which amounts to a reduction of 124 locations compared to the previous year. With this, the group is taking a rare step, as the reduction in the number of stores within a fiscal year is unusual for Starbucks. The company plans to offer severance and support packages to the affected employees.