Starbucks Plan To Close Hundreds of Stores Sparks Concern for Staff
Summary
Starbucks announced it will close 250 stores across North America by the end of the week due to poor financial performance. The company plans to support affected employees with job transfers or severance pay but has given some staff very short notice about their job status.Key Facts
- Starbucks will close about 1% of its North American stores, which equals 250 locations.
- The closures come after a review showing some stores are not financially successful or providing good customer experiences.
- Staff received short notice of layoffs, some with less than 48 hours.
- Starbucks plans to help affected employees by offering transfers or severance packages if no transfer is possible.
- This closure is part of ongoing portfolio management, with some stores closing and others opening every year.
- Starbucks expects to open fewer new stores globally this year, about 440 instead of the previously planned 600-650.
- The company will incur about $300 million in costs due to the closures, including lease termination and severance pay.
- Starbucks has not yet provided a full list of which stores will close but will place signs on affected locations.
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