Starbucks to close stores and cut nonretail roles in $1B restructuring

Starbucks announced Thursday that it will close hundreds of stores across the United States and Canada and eliminate about 900 nonretail roles as part of a $1 billion restructuring intended to accelerate a turnaround under CEO Brian Niccol. The company said closures begin immediately and expects to finish its fiscal year with roughly 18,300 North American locations, down from 18,734 as of June 29.

In a letter to employees, Niccol said a companywide review identified coffeehouses where Starbucks does not see a path to financial stability or is unable to create the physical environment customers and employees expect. "This is a more significant action that we understand will impact partners and customers," he wrote, adding that the company will try to transfer store partners to nearby locations where possible and will provide severance packages and other partner support for those who are not placed.

Starbucks said the restructuring will cost about $1 billion, including roughly $150 million for employee separation benefits and about $850 million tied to store closures and lease exits. The company also said it will close many open nonretail positions and asked employees able to work...