Starbucks to close 200 stores cut 900 posts while CEO Brian Niccol moves forward with the new plan of the company

Starbucks takes another step in his turnaround. The coffee chain announced on Thursday, September 25 that it will close about 200 stores this year and cut more than 900 non-retail works. The move is part of CEO Brian Niccol’s “Back to Starbucks” plan to steady the business after a difficult year. Niccol, who joined Starbucks a high profile at Chipotle a year ago, that Niccol, who joined Chipotle a year ago. Investors initially cheered his arrival. Nasdaq reports that the stock jumped 25 percent the day it was announced, but the results have been mixed since then. Which changed Starbucks Niccol, in his statement that the company has checked its store portfolio and will close places that do not meet the customer expectations or show a path to profitability. With openings and closures together, Starbucks expects the year with about 18,300 stores in North America. More than 1000 Starbucks outlets will be renovated over the next 12 months. Niccol described these changes as “the introduction of larger texture, warmth and layered design.” Early feedback from the upgraded stores was ‘positive’, and adding more staff during peak times also helps service, he added. In addition, Starbucks will also include a number of open positions that are not yet filled, along with 900 current non-retail partner trolls, which Niccol calls a ‘difficult decision’. A similar move to 2008 The “Back to Starbucks” plan is similar to what Howard Schultz did when he returned as CEO in 2008. Schultz closed 600 stores, arguing that the chain was too far and had to recover. The move helped Starbucks regain its foot. Starbucks are now much larger, face a fierce competition from chains such as Dutch Bros, and navigate a poor environment for consumer spending. Niccol remains optimistic “We will unleash a wave of innovation that attracts growth, increases customer service and ensures that everyone experiences the best of Starbucks,” Niccol said in the latest earnings call, according to Nasdaq. Yet sales of the same stores are under pressure, and the shares are trading at a high valuation for a company in transition. Investors may need to remain patient as the “Back to Starbucks” plan continues. Questions Why do Starbucks close stores? Starbucks said it includes stores that do not meet customer expectations or show a path to profitability as part of his turnaround plan “Back to Starbucks”. How many Starbucks shops closes? The company expects a net reduction of about 200 stores this year, leaving about 18,300 in North America. How many posts will Starbucks cut? Starbucks plans to cut 900 non-retail work and will also close some open positions. What else does Starbucks change? More than 1,000 stores will be renovated to update designs and improve customer experience.