(NEW YORK) — Coffee giant Starbucks will lay off workers and close stores as part of a $1 billion restructuring plan, CEO Brian Niccol said in a memo to employees on Thursday.
The company will slash 900 employees at its stores in North America, Niccol said. The store closures will amount to a roughly 1% decline in the total number of Starbucks locations in North America in this fiscal year, after accounting for some store openings, Niccol added.
“While we’re making good progress, there is much more to do to build a better, stronger, and more resilient Starbucks,” Niccol said.
Shares of Starbucks ticked slightly higher in pre-market trading after the announcement early Thursday morning.
Starbucks weathered sluggish sales in recent years as customers weathered a years-long bout of elevated inflation, analysts previously told ABC News.
This is a developing story. Please check back for updates.
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