Retail coffee chain Starbucks (SBUX) has announced that it is closing underperforming stores and eliminating jobs as part of a comprehensive restructuring plan.
The majority of the store closures and job cuts will occur in the U.S. and Canada, according to the Seattle-based company.
It’s not clear how many stores in North America will be closed. But Starbucks said it is looking at cutting about 900 jobs across its support teams.
In a news release, Starbucks said that the restructuring is necessary to help the struggling company revive its sales and boost profits.
Starbucks has been overhauling its operations under a revival plan that aims to bring a coffeehouse vibe back to its stores.
Redesigned Starbucks outlets include ceramic mugs, more comfortable seating, and reduced wait times for service.
Starbucks has struggled since the Covid-19 pandemic as consumers shy away from its stores and seek out cheaper coffee alternatives.
SBUX stock has declined 9% this year to trade at $84.27 U.S. per share. The company’s stock is down 0.04% over the past five years.
