By Shreya Biswas

Copyright indiatimes

APStarbucks closing stores

Starbucks closing stores: Starbucks is taking what CEO Brian Niccol calls “significant action” to try to turn around its struggling business, announcing a new wave of store closures and corporate layoffs.Starbucks Reveals Hundreds of Store Closures in SeptemberThe coffee chain said on Thursday it will close hundreds of cafés this month, roughly 1% of its locations, as per a report. Starbucks had 18,734 North American stores at the end of June and expects to finish September with 18,300, according to a CNN report. The restructuring will cost about $1 billion. Shares of Starbucks (SBUX) were flat in premarket trading.In a letter to employees, Niccol explained that the closures followed a review of the company’s footprint. The stores shutting down are ones “unable to create the physical environment our customers and partners expect, or where we don’t see a path to financial performance,” as quoted by CNN.ALSO READ: US stock market futures today: Dow, S&P 500 & Nasdaq slips ahead of jobless data and Fed policy signalsWhile Starbucks regularly shuts down underperforming locations, Niccol described this round as more substantial and said that, “This is a more significant action that we understand will impact partners and customers. Our coffeehouses are centers of the community, and closing any location is difficult,” as quoted in the report.Live EventsAlongside the closures, Starbucks will remodel more than 1,000 stores with a refreshed design that includes cozier chairs, more outlets, and warmer colors, as per CNN.Starbucks Announces 900 More Corporate LayoffsThe company is also trimming its workforce. After cutting about 1,000 jobs in February, Starbucks announced another 900 corporate layoffs this week, as per the report. Many open positions will be closed as well. Affected employees will be notified on Friday and offered severance and support, according to the CNN report.The Starbucks CEO said, “I know these decisions impact our partners and their families, and we did not make them lightly,” adding, “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,” as quoted in the report.ALSO READ: How to customize your iPhone lock screen on iOS 26 to match your styleStarbucks Menu Cuts and New Food & Drink AdditionsNiccol, who joined as CEO about a year ago, has already tried to reshape the chain by cutting the menu by 30% while introducing trend-driven items like protein toppings and coconut water. Food offerings, including new croissants and baked goods, are being refreshed, and Starbucks has reintroduced touches like self-serve milk and sugar stations and doodled coffee cups, as per the CNN report. The company also tweaked its full name, “Starbucks Coffee Company,” to highlight its core focus on coffee.Starbucks Faces Ongoing Struggles Despite New EffortsBut the turnaround has been bumpy. The stock is down about 12% since Niccol took over, and sales have yet to improve. Some of the changes, like new uniforms that led to lawsuits and complicated drink recipes, have frustrated baristas, as per the report.FAQsWhy is Starbucks closing stores?Because some cafés aren’t meeting customer expectations or showing financial potential.Is Starbucks laying off workers?Yes, about 900 more corporate layoffs were announced, on top of 1,000 earlier this year.Add as a Reliable and Trusted News Source Add Now!
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