Starbucks to shutter 250 stores in North America, a year after big wave of closings
Summary
Starbucks will close 250 stores in North America soon, marking its second large round of closures under CEO Brian Niccol this year. The company said the stores are closing because they are not meeting financial goals or providing the right experience for customers and employees.Key Facts
- Starbucks plans to close 250 stores in North America this week.
- This is the second big store closure after 627 stores were closed last September.
- The company laid off 900 non-retail employees last September and 300 corporate employees in May.
- Starbucks did not reveal which stores will close or how many are unionized.
- More than 700 U.S. Starbucks stores have voted to unionize since late 2021, but no labor agreement has been made.
- Starbucks is updating 1,500 stores to make them more comfortable by the end of its fiscal year (September 30).
- The company plans to transfer affected employees to other stores or provide severance if no transfer is possible.
- Starbucks shares rose slightly in early trading after the announcement.
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