Starbucks Under Niccol Closes 200 Stores, Cuts Jobs in Turnaround Plan
Starbucks, led by Brian Niccol for a year, is implementing a restructuring plan. The company initially saw its stock rise but has since lagged. Niccol's 'Back to Starbucks' strategy involves store closures and job cuts, aiming to boost profitability and customer experience.
Starbucks is shutting down underperforming stores, with plans to close around 200 locations in North America this year, leaving approximately 18,300 stores. This move echoes former CEO Howard Schultz's strategy in 2008. The company is also eliminating 900 non-retail jobs, offering severance packages that exceed legal minimums, including several weeks of pay and three months of health insurance coverage.
Niccol's strategy, 'Back to Starbucks', focuses on enhancing customer service and store environment. He promises a wave of innovation to fuel growth by 2026. However, same-store sales continue to decline under his leadership, and the company faces economic headwinds. Investors are advised to be patient as Niccol's strategy unfolds.
Starbucks is in the midst of a turnaround plan under CEO Brian Niccol. The company is closing underperforming stores and reducing non-retail jobs. Niccol's 'Back to Starbucks' strategy aims to improve customer service and store environment, with promises of innovation by 2026. Despite current challenges, investors are urged to remain patient as Niccol's strategy takes effect.
