Starbucks to Cut 900 Jobs and Shut Stores in $1B Overhaul
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Key Points
- 900 non-retail roles to be eliminated across North America
- About 100 stores (1% of total) to close amid weak sales
- $1B restructuring includes $150M in severance, $850M in closures
- Comes after six straight quarters of declining U.S. sales
Starbucks has announced a sweeping $1 billion restructuring plan that will cut 900 jobs and close around 100 North American stores. The layoffs will affect employees in non-retail roles, while additional open positions will be eliminated.
The move follows six consecutive quarters of declining U.S. sales, as inflation-weary consumers scale back on expensive coffee purchases. Earlier this year, the company cut 1,100 corporate roles. Starbucks says the restructuring is aimed at prioritizing resources to strengthen long-term growth, while also planning upgrades to more than 1,000 store locations over the next year.
The announcement has drawn criticism from Starbucks Workers United, which represents staff at over 650 stores. The union argues the cuts show the company is backsliding as it faces ongoing pressure to agree to a first labor contract. Shares in Starbucks dropped 1% after the news.
