(LOOTPRESS) – Starbucks announced Thursday that it will be closing some locations and laying off hundreds of employees as part of a company-wide effort to reduce costs.
In a letter from Chairman and CEO Brian Niccol, the coffee chain said it is “reducing non-retail headcount and expenses” by eliminating 900 “current non-retail partner roles and clos[ing] many open positions.”
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The company also plans to shut down locations “where we’re unable to create the physical environment our customers and partners expect, or where we don’t see a path to financial performance.”
Employees affected by the layoffs will be notified Friday and will receive severance and support packages, including extensions of their benefits.
Starbucks instructed staff whose jobs do not require them to be in an office to work from home Thursday and Friday.
For employees at stores that are closing, the company said it is “working hard” to offer transfers to other locations.
Those who cannot be transferred will receive “comprehensive severance packages” and may be rehired when new locations open.
Niccol also emphasized plans to improve operations, promising more hours for coffeehouse employees, additional store staff, and new designs with “innovation to create the future,” all aimed at “carefully manage[ing] costs” and “drive long-term growth.”
