Starbucks to close some US and UK stores, cut about 900 jobs in restructuring

Starbucks said it will cut about 900 jobs and close its worst-performing stores in the United States and in some parts of the United Kingdom as part of a cost-saving restructuring plan. Most of the stores earmarked for closure are in North America, the company said, and the revamp is intended to reduce wait times and help revive sales.

The move follows a February announcement in which Starbucks said it would ax about 1,100 jobs and simplify its U.S. menu to address flagging sales in its home market. This is a more significant action that we understand will impact partners and customers, the company’s chief executive said in a statement, though Starbucks said it remains on track to open 80 new stores in the United Kingdom. "While the EMEA [Europe, Middle East and Africa] business is on track to meet its commitment to open 80 new stores in the UK and 150 across EMEA this financial year, some stores in the UK, Switzerland and Austria will close as a result of this portfolio review", Mr Niccol added.

In a letter to employees, he noted that the stores marked for closure were "unable to create the physical environment our customers and partners expect, or where we don't see a path to financial performance". Starbucks said the job cuts would fall in its support teams rather than at the front of the house, the baristas who interact with customers.

The closures reflect a broader effort to streamline operations and focus on core markets, as the company seeks to accelerate growth in its remaining locations and improve service levels for customers.