Starbucks to close hundreds of stores, from 900 workers
Latest Job Opportunities in India
Discover top job listings and career opportunities across India. Stay updated with the latest openings in IT, government, and more.
Check Out Jobs!Read More
Starbucks to close hundreds of stores, from 900 workers
By de Ann Durbin, AP business author
Starbucks said on Thursday that it closes hundreds of us, Canadian stores and lay off 900 non -contestants because he focuses more of his resources on A. turn around.
The coffee giant in Seattle said that closing the store would start immediately. The company will not offer a number of stores that are closed, but it said it expects to have 18,300 sites when its financial year ends on Sunday. As of June 29, the company had 18,734 sites.
In a research note on Thursday, the TD Cowen Andrew Charles analyst that Starbucks will close about 500 stores in the fourth fiscal quarter.
Starbucks said that workers in his stores will be offered to be transferred to other locations wherever possible and separation packages.
Starbucks said it would notify non -infiltrators whose positions are eliminated early on Friday. Starbucks asked the employees who can work from home to do this on Thursday and Friday.
In a letter sent to the employees on Thursday, the Chairman and CEO of Starbucks Brian Nicole said that a review of the company’s stores has identified sites where the company does not see a path to financial stability or unable to create the physical environment that customers expect. These stores are closed.
“Every year, we open and close the café for various reasons, from financial performance to the expiration of the rent,” Nicole wrote. “This is a more important procedure that we understand will affect partners and clients. Our cafes are centers of society, and to close any place is difficult.”
Starbucks said it expects to spend one billion dollars on restructuring, including $ 150 million on the advantages of dismissing employees and 850 million dollars related to the closure of the actual store and the cost of rent outside.
Starbucks shares fell by 1 % in morning trading on Thursday.
It was not immediately clear the number of stores that close the unions. The workers have voted in 650 stores owned by the company’s Starbucks stores on the union since 2021, but they have not reached a contract agreement with the company.
The workers at Starbucks United, the working group that organizes workers on Thursday, said the closure had been done without inputs from Paristas Starbucks. The Federation said it intends to engage in bargaining in every store represented in the federation, which is closed to ensure that workers are placed in another store they prefer.
Al -Ittihad said: “Reforming what has been broken in Starbucks is not possible without expanding people who deal with the company’s customers day after day.”
The news closing the store came a little more than a week after the union employees in three states A lawsuit against Starbucks Over the course of the new clothing law, saying that the company refused to pay the workers who had to buy new clothes.
Starbucks said it used a consistent group of standards to define stores that close and represent the union was not a worker.
Starbucks will finish its 2025 financial year with 124 stores less than its previous financial year. It is rare for Starbucks to shrink the number of its stores during the fiscal year.
Nicole said that Starbucks plans to increase the number of its stores in North America in its next financial year. The company said it is also planning to redesign more than 1,000 sites in the next 12 months to grant them a Warm, more welcome.
This is the second big round of workers’ demobilization in Starbucks this year. In February, Nicole Workers’ demobilization announced Of the 1100 companies from the world and the spending of several hundreds of open positions. At that time, Nicole said that Starbucks need to work more efficiently and increase accountability for decisions.
Nicole is a transformation specialist I brought to Starbucks A year before this month to give the brand a shake. Under the leadership of Nicole, the troubled Chipotle series doubled, as Niccol was the CEO for about 6 years, its revenues were mainly doubled and its profits, and the price of its share increased.
In July, Starbucks reported its sixth consecutive quarter of sales of the sixth stores, as traffic in the weak United States continued to be a depletion of the company. Niccol tries to convert this by adding employees, making stores more comfortable and providing programs that help give priority to requests and ensure that customers can get their drink within four minutes.
It was originally published:
Starbucks to close hundreds of stores, lay off 900 workers as part of turnaround plan