Starbucks is shutting up stores and trimmed as part of its CEO’s $ 1 billion reorganization plan

The Starbucks is cutting jobs and shuttering stores as part of CEO Brian Nicole’s Plan to revive the coffee series.

Starbucks announced the move on Thursday, said in one US Securities and Exchange Commission (Sec) filing that the company was restructuring its operation.

Nicole wrote on Thursday Letter Employees of North America were also presented to SEC, that Starbucks will close about 1% coffeehouse in the financial year 2025, which ends on the last Sunday of September. The company will end the financial year with about 18,300 total starbuck locations in the US and Canada.

Connected: Starbucks experienced just one ‘Record-Breaking Sales Week’, thanks to a line of products

Meanwhile, the coffee series plans to cut its non-retail workforce with 900 roles and discontinue several open positions. The affected employees will be informed on Friday morning and will be given the “generous break and support package, including” profit extensions, “, Nikkol wrote. He asked all the employees who did not need to work in onsite or office to work from home on Thursday and Friday.

This is the second round of Starbucks under Niccol. Under his leadership, Starbucks shut down 1,100 corporate staff in February. As CNBCStarbucks appointed around 16,000 corporate staff by the end of 2024.

^{Starbucks CEO Brian Nicole. Photo by Michael Reeves/Getty Image}

When it comes to storing it, Starbucks is choosing which places to shutter based on their atmosphere and financial performance. Nikkol mentioned in this letter that coffeehouses who were “unable to create a physical environment in the hope of our customers and partners” or those who were not performing financially well would not be closed.

Nicole wrote in the letter, “Our goal is to give a luxurious atmosphere for every coffee and a warm and welcome place for every occasion.”

Connected: Starbucks pinchs its turnaround hopes on ‘Green Apron Services’. what is it exactly?

Despite the approximate closure, Starbucks still planned to re -prepare more than 1,000 places with features to motivate customers to live, such as more comfortable seating and more power outlets, per, per, per, per, per. CNN trade,

According to SEC filing, Starbucks will spend about $ 1 billion in stores and reorganization activities related to reorganization activities, expected to be within its North American business with 90% cost. The company is expected to spend about $ 150 million at the employee separation cost, as well as $ 850 million in the store closure.

The restructuring plan of Starbucks is caused by a sales recession. In July, the company reported its sixth consecutive quarter of the decline in sales of equal-store. Nikkol’s “Back to Starbucks” scheme intends to bring customers back to shops with new offerings, such as protein cold foam is 15 grams of protein and no couple sugar, and no coupled sugar, and Better service,

Connected: Starbucks created a new ‘luxury’ office near CEO’s Newport Beach, California Home