Starbucks has announced plans to shut cafes and cut 900 jobs as part of a £750 million global restructuring drive.
The world’s biggest coffee chain is seeking to reverse slowing sales with a shake-up of its operations in North America, the UK and beyond.
Chief executive Brian Niccol told staff the company would close underperforming outlets that failed to meet financial targets or provide the “warm and welcoming space” customers expect. The cuts will affect more than 100 stores in North America, while some UK sites will also shut, although Starbucks has not confirmed how many.
The restructuring will also see 900 “non-retail” staff lose their jobs. Starbucks said the plan would allow it to refocus on improving existing stores, adding more staff hours, and investing in new designs and customer experience.
Despite the closures, Starbucks is pressing ahead with expansion in the UK, with 80 new stores due to open this year. The company runs more than 500 company-owned outlets across the country, employing over 5,500 people, alongside a large number of franchised sites.
The overhaul follows a difficult period for Starbucks, which has faced falling sales, investor pressure, strike action in the US, and boycotts in the Middle East. In the UK, it has also struggled against growing competition from value rivals including Greggs.
Latest accounts show Starbucks’ UK sales fell from £548million to £526million in the year to September 2024, with a pre-tax loss of £36.2million. Globally, sales dropped by 2% in the most recent quarter.