Starbucks To Close Locations As Part Of Restructuring Plan

The move is part of the chain's 'Back to Starbucks' transformation under CEO Brian Niccol.

Starbucks announced plans that involve closing down several locations.

As part of a $1 billion restructuring plan, around 100 of the over 11,400 U.S. coffee houses will shut down. Approximately 900 non-retail employees will be laid off as a result.

The company is expected to incur around $150 million in employee separation costs, plus about $850 million in restructuring charges related to the store closures.

The move is part of the chain’s ‘Back to Starbucks’ transformation under CEO Brian Niccol.

“These steps are to reinforce what we see is working and prioritize our resources against them,” Niccol said. He added, “these steps are necessary to build a better, stronger, and more resilient Starbucks.”