Starbucks to shut cafes and axe 900 jobs in 750m rescue plan as sales slump and UK losses mount

"Chief executive Brian Niccol revealed the overhaul in a letter to staff on Thursday, confirming that underperforming stores across North America and the UK would be shut as the world's biggest coffee chain battles slowing sales. The company would not say how many British outlets face closure, but warned the action was "significant" and would hit both staff and customers."

"The sweeping plan includes the closure of more than 100 stores in North America, while 900 "non-retail" roles will be axed globally. Starbucks said it would instead focus on upgrading existing outlets with redesigned interiors, more staff hours and enhanced service. The Seattle-based chain has struggled with a cocktail of problems: slowing demand, boycotts in the Middle East, worker strikes in the US, and fierce competition in the UK from rivals like Gail's and Greggs."

Starbucks will close dozens of cafés and implement a £750 million restructuring aimed at reviving performance. The plan includes more than 100 North American store closures and the elimination of 900 non-retail roles globally. The company plans to upgrade existing outlets with redesigned interiors, more staff hours and enhanced service. Performance has been weakened by slowing demand, Middle East boycotts, US worker strikes and strong UK competition from rivals such as Gail's and Greggs. UK sales fell from £548m to £526m and losses increased to £36.2m. The group still intends to open 80 new UK stores this year and employs 5,500 people across over 500 company-owned British stores.

Read at Business Matters