Starbucks to close unprofitable stores, lay off 900 employees
Starbucks is shutting down several stores and laying off 900 employees as part of a $1 billion restructuring plan led by CEO Brian Niccol.
By the end of fiscal 2025, the company wants to trim its US and Canada store count by about 1%, bringing it down to 18,300 locations.
The closures target shops that just aren't making enough money.
Sales have been slipping for 6 quarters straight
Niccol says the focus is on making Starbucks a better hangout spot—think more seating and charging outlets at 1,000 revamped stores to encourage longer stays.
Starbucks is also simplifying its menu and rolling out sugar-free and protein-packed drinks to reduce wait times and better match changing consumer tastes.
Still, sales have been slipping for six quarters straight, so it's a wait-and-see on whether these changes will turn things around.