Starbucks is making some moves. Those include closing 1% of its locations in the US and North America and cutting about 900 jobs, CEO Brian Niccol told employees Thursday, Sept. 25.
Starbucks didn’t announce yet which stores will close, but the CEO says employees at closing locations will be notified this week.
Here’s what we know so far.
Why is Starbucks closing stores and cutting jobs?
The specialty coffee chain will close specific locations “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,” Niccol said in a memo sent to employees and posted on the Starbucks blog.
The moves are part of the “Back to Starbucks” strategy, instituted by Niccol, the former Chipotle CEO who left to become Starbucks’ chief executive in September 2024.
“We’re investing in green apron partner hours, more partners in stores, exceptional customer service, elevated coffeehouse designs, and innovation to create the future,” he said in the memo. “We will continue to carefully manage costs and stay focused on the key areas that drive long-term growth.”
The company plans to “uplift more than 1,000 locations to introduce greater texture, warmth, and layered design,” Niccol said.
Are any of Starbucks’ Illinois locations closing?
Starbucks has not yet released a list of which stores will close.
Recent Starbucks closures
The company recently announced it would close 80 to 90 Starbucks “Pick Up” stores in more than 20 states. Those locations were “exclusively designed for mobile orders and quick pick up without the wait,” the company said at the time. Illinois had several ‘Pick Up’ locations.
When will store employees be notified of Starbucks closures?
Employees at those locations will be notifed this week and will be eligible for transfer to nearby locations, he said. The reduction in 900 “current non-retail partner roles” is part of the company’s goal to “build toward a better Starbucks,” Niccol said.
Those whose jobs are being eliminated will be notified Friday morning, Sept. 26, Niccol said. “We will offer generous severance and support packages including benefits extensions.”
“We expect to engage in effects bargaining for every impacted union store, as we have done elsewhere, so workers can be placed in another Starbucks store according to their preferences,” Starbucks Workers United, said in a statement emailed to IndyStar, part of the USA TODAY Network.
Any Starbucks employee whose job requires them to be “on site in the office, we’re asking you to work from home today and tomorrow,” Niccol said.
CONTRIBUTING: Hannah Hudnall.
This article originally appeared on Journal Star: Starbucks says it plans to close stores, cut hundreds of jobs. What the CEO said
Reporting by Mike Snider, Jenny Porter Tilley and Katie Wiseman, USA TODAY NETWORK / Journal Star
USA TODAY Network via Reuters Connect
