Starbucks on Thursday said it would close stores and lay off 900 people in a $1 billion restructuring plan.
Why it matters: The company is deep in a turnaround after prolonged sales declines.
Driving the news: CEO Brian Niccol, in a memo to employees Thursday morning, said the cuts were part of that long-term revamp.
- "During the review, we identified coffeehouses where we're unable to create the physical environment our customers and partners expect, or where we don't see a path to financial performance, and these locations will be closed," Niccol wrote.
- He did not say how many stores would be closed, and the company did not specify in an SEC filing, either.
- Niccol did say that overall North American company-operated stores would decline by about 1% in fiscal 2025 after accounting for openings and closures.
Between the lines: Niccol said the layoffs would be in "non-retail" roles and that the company would also eliminate some open positions.
By the numbers: Starbucks shares were about 0.1% higher in premarket trading.
- The stock's down about 8% this year, lagging the broader market.
Editor's note: This story was updated with additional details from the company's announcement.
