Starbucks will close hundreds of locations across the nation, causing many to lose their jobs, the CEO announced on Thursday.
“I know these decisions impact our partners and their families, and we did not make them lightly,” said Starbucks Chairman and CEO Brian Niccol in a release. “I believe these steps are necessary to build a better, stronger, and more resilient Starbucks that deepens its impact on the world and creates more opportunities for our partners, suppliers, and the communities we serve.”
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Around 900 jobs will be cut, according to Starbucks.
There were 18,734 Starbucks in the U.S. and Canada as of June 29, so the about 1% decline announced on Thursday would mean around 434 stores would close.
The coffeehouses where Starbucks is “unable to create the physical environment our customers and partners expect, or where we don’t see a path to financial performance,” will be closed, according to Niccol. The locations that will be closed will be notified this week, according to Niccol.