Starbucks to Close Stores, Slash 900 Jobs in Restructuring Plan

Starbucks announced plans to close unprofitable locations and cut corporate jobs as CEO Brian Niccol focuses on the company’s turnaround plan, Brooke DiPalma reported for Yahoo Finance.

The move comes after the company laid off 1,100 employees earlier this year. (Photo: Keizers, Wikimedia Commons) 

In a letter posted to its blog and sent to employees on Thursday, Niccol shared that the company plans to eliminate 900 non-retail roles and close open positions as part of a $1 billion restructuring effort.

The memo said employees would be notified on Sept. 26 and would receive “severance and support packages including benefits extensions.”

“We will continue to carefully manage costs and stay focused on the key areas that drive long-term growth,” Niccol wrote.

This comes after the company laid off 1,100 employees earlier this year. Niccol said the company plans to use the savings to invest in its stores by adding more customer service employees.

Other investments include new coffeehouse designs and innovations.

Corporate employees, including support partners and people managers, are now required to come to the office four days a week starting Sept. 29, Niccol said in July.