Starbucks is taking serious steps to fix its struggling business by closing many of its stores.
At the same time, the company is also cutting more jobs at its headquarters as part of CEO Brian Niccol's plan to improve and revive the company's performance.
As per multiple reports, CEO Niccol announced that Starbucks will shut hundreds of its cafes, about 1% of its total locations, this month.
Starbucks expects to close over 100 cafes as part of a $1 billion restructuring plan.
“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,” Niccol said in a statement.
Even though Starbucks is closing hundreds of stores before the end of its fiscal year, the company plans to resume growth afterwards.
As per the reports, it will remodel over 1,000 location, making them more cozier and comfortable with better seating, extra power outlets and warmer interior colours.
In addition to store closures, Starbucks will lay off 900 more corporate employees on top of the 1,000 already laid off in February.
The affected workers will be informed on Friday and will get generous severance and support while the company will also remove many job positions.
