Company to Take $1 Billion Hit Amid Major Restructuring

Starbucks announced plans to close about 400 underperforming stores in the U.S. and cut 900 corporate jobs. The company will also take a $1 billion charge related to closures and layoffs. This move is part of a broader effort to turn around its struggling business.

Source The New York Times

CEO Brian Niccol explained that the closures will target coffeehouses that fail to meet customer expectations or lack a path to profitability. He emphasized that while the decision was difficult, it was necessary to build a “better, stronger, and more resilient Starbucks.”

Over the past year, Starbucks reported its sixth consecutive quarterly decline in same-store sales. The company’s shares have fallen 12% during this period, prompting management to accelerate structural changes and revamp its long-term strategy.