Starbucks Revamps Stores, Cuts Jobs in $1B Restructuring Plan
Starbucks is revamping its stores and cutting jobs as part of a $1 billion restructuring plan. CEO Brian Niccol aims to make stores more appealing with additional seating and power outlets to boost customer dwell time. Meanwhile, investors reacted calmly to the news, with the stock showing a slight pre-market increase but a year-to-date decrease of eight percent.
The restructuring plan involves closing underperforming stores and reducing the total number of US and Canadian locations by one percent to 18,300. Around 900 jobs will be cut. This is the second round of layoffs under Niccol's leadership, following six consecutive quarters of declining same-store sales. The AKTIONÄR currently does not recommend Starbucks as an investment, citing recent store closures and job cuts.
Starbucks is responding to intense competition, particularly in the US and China, where rivals like Walmart and Target offer cheaper drinks and faster service. To combat this, Starbucks is simplifying its menu, reducing wait times, and expanding its range of sugar-free and protein-rich drinks. The company also plans to reopen and modernize around 1,000 existing cafes following the consolidation.
Starbucks' turnaround is expected to take time, with persistent competitive pressure burdening the stock. The coffee giant is focusing on more profitable locations with a higher quality of stay. Despite the challenges, Starbucks remains committed to improving its performance and adapting to the changing market landscape.
Read also:
- Trump and Xi speak over the phone, according to China's confirmation.
- Unlawful MMO gold peddler cultivates around half a million dollars in income, triggering a tax dispute, followed by developers unveiling strategies to clamp down on real-world transactions
- Prices of transit tickets in Berlin and Brandenburg are on the rise
- Linde Wins Major Engineering Design Contract for Equinor's Low Carbon Hydrogen Project at H2H Saltend, Progressing Towards a Greener Future
