Starbucks Announces Store Closures and Job Cuts

Starbucks has revealed plans to close underperforming stores in the United States and the United Kingdom. The company will cut approximately 900 jobs in the US as part of a cost-saving strategy. This decision aims to reduce wait times and boost sales in their largest market.

The coffee chain had previously announced job cuts and menu simplification in February to address declining sales. While some stores in the UK, Switzerland, and Austria will close, Starbucks still plans to open 80 new stores in the UK this year.

The company's CEO, Brian Niccol, explained that the stores marked for closure were unable to create the expected environment for customers and staff. Starbucks has been facing challenges, including six consecutive quarters of declining sales in the US and increasing competition from drive-through coffee shops.