Starbucks to close the weak stores in restructuring efforts Business and Economics News

Starbucks says it will close the stores with weak performance throughout North America, where CEO Bianan Nicole is pushing forward the company’s restructuring effort, which is expected to cost a billion dollars in an attempt to revive the company’s sales.

The coffee series announced the decision on Thursday.

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In general, the number of stores in the United States and Canada is expected to decrease by 1 percent, or several hundreds of stores, by the end of the 2025 fiscal year, including the iconic Seattle commander.

Niccol is trying to restore the “café” chain’s feeling of returning customers to its outlets after six quarters of US sales.

Discounts are expected to affect 900 workers and track 1100 discounts in companies earlier this year. However, the discounts are emphasized through a NicCol compensation package of $ 95.8 million last year, or 6666 times more than average Parista. It is the biggest gap in the CEO of the worker for any company in S&P 500, according to the Institute’s report for Political Studies 2025.

It hit the trade union stores

The company confirmed that among the closed stores that the pioneering Starbucks site was Al -Ittihad in Seattle, a large cafe with a house in the house.

The talks between Starbucks and United workers started United, which represents more than 12,000 Paristas, last April, but hit a wall since then.

in DecemberSome members of the Federation went out of their jobs in multiple American cities in a blow that spanned several days during the peak holiday season.

The workers voted at the Seattle Store, which is located near its headquarters, to unionise in 2022, and the federation was involved on Monday due to contract negotiations.

Al -Ittihad confirmed that a trade union store in Chicago, on Ridge Street, was closed. The Union said that Parisas at the store was being treated on Thursday morning, in a plan that was set before the store was closed.

Parestas came on the sit -in line from stores all over the Chicago region. “We are here to remind the company that the workers are the ones who already bring people to stores,” said Diego Franco, who came from a store in the Dis Blanes suburb in Chicago.

A Starbucks spokesman said that the trade union situation is “not a worker in the decision -making process.”

In a statement, Starbucks United workers criticized the closure. “It was never clear why Paristas in Starbucks needed the support of the Union,” the union said, adding that he plans to bargain with the affected workers so that they could be transferred to other stores.

TD Cowen’s analysts estimate that about 500 owned by North America are affected by restructuring.

Trying to renew

In his first year in this position, Niccol focused on investing in Starbucks stores to reduce service times and restore a coffee environment, with the pruning layers of management.

The company has published a series of quarterly sales declines in the United States, as the demand for the price of the price of the price is a great success of consumers who are difficult to satisfy and compete.

“During the review, we have identified cafes where we cannot create the physical environment that our customers and partners expect, or where we do not see a way to financial performance, and these sites will be closed,” Nicole said in a letter to the employees.

The CEO said that the company will end the fiscal year with about 18,300 sites out of the total Starbucks-which the company runs and its license-throughout the United States and Canada. This compares the sites of 18,734 sites that were revealed in an organizational file in July.

Niccol has enjoyed the confidence of investors since his assumption after his leadership in Chipotle Mexican Grill, where he is attributed to a turning leadership in the Borito series.

“Starbucks take more aggressive measures as part of the transformation efforts. The closure of the store is more than we expected, while we believe that workers’ demobilization operations are suitable for the previously announced budget framework,” said Andrew Charles, TD Cowen Andrew Charles analyst, said.

Starbucks said on Thursday that the job cuts will be in its support teams, adding that the company will close many open positions.

The company employs about 10,000 people in non -forces in the United States, as of September 29, 2024.

“This is a more important procedure that we understand will affect partners and clients,” Nicole said.

Meanwhile, Starbucks invest in improving employment and integrating technology for more efficient requests in its cafes and enhancing customer experience.

The company said earlier this year that it would eliminate 1,100 roles company. In August, it also announced a modest increase of 2 percent for all employees in North America this year.