Starbucks to close weak stores, and reduce jobs

Starbuck Brian Nicole CEO On Thursday, the coffee giant will close the weak performance stores in the United States, reduce 900 unpleasant partner roles and freeze many open positions as part of the ongoing transformation strategy.

Nicole said in a letter to the employees that during the review of the North American Coffee Portfolio in Starbucks, the company has identified sites “unable to create the physical environment that our customers and partners expect” or where you do not see a “way to financial performance.”

The company opens and cafes are closed every year for various reasons, including financial performance and rental violations, but Niccol said that “this is more important” will affect a larger group of employees and customers.

Starbucks CEO says that the coffee chain “before the specified date” is in a great effort to shift after one year

Nicole did not reveal the number of sites to be affected, but employees in the affected stores will be notified this week. Starbucks also plans to inform the employees whose roles are eliminated on Friday.

Nicole said that the company has already opened many sites over the past year, as it launched the aggressive “return to Starbucks” strategy to help the company in contrast to the effective decrease in traffic and competition in the very saturated market, which means that the number of stores run by the company in North America will only decrease by about 1 % in the fiscal year 2025.

index	protection	last	Changing	% Change
Swub	Starbucks Corp.	83.80	-47	-56 %

By the end of the fiscal year, the company will have approximately 18,300 sites in Starbucks that are operating and licensing throughout North America. In the fiscal year 2026, the company plans to develop the number of cafes that operate, with more than 1,000 “lifting” sites with the new interior design of the company during the next year.

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Just one year after the job, Niccol said that the company “before the specified date” is in its transformation, but it told the employees on Thursday that more work remains to build a more flexible company. This includes carefully managing and focusing on the main areas that drive long -term growth.

“These steps are to enhance what we see and give the priorities of our resources against them,” Nicole said.

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A year ago, Nicole became the third chief executive of Starbucks within two years, a company that has inherited pressure from union campaigns throughout the country and A successor in a disappointing financial quarters The traffic also decreased. With his second year entry into the job, traffic is still under pressure because the broader environmental factors have caused consumers more aware of the place where they spend money.

The company’s transformation plan focuses on reviving the aesthetic of the cafe through the designed interiors that encourage customers to continue, along with “personal touches” such as providing drinks in cups and writing names on cups with Sharpies. Another priority is to improve operations by ensuring the employment of stores properly, and simplifying mobile phone orders, allowing customers to deal with their spices and commit to making all drinks ready in four minutes or less.

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Nicole noted on Thursday that “the early results of the climb of the café show that customers who often visit, stay longer, and exchange positive comments,” Nicole pointed out on Thursday. He also said that the company’s efforts to ensure the employment of stores properly, especially during peak times, have already led to an increase in transactions and sales and shrinking waiting times for customers.