Starbucks to close some US and UK stores

Starbucks will cut about 900 jobs and close its worst performing stores in the US as well as some in the UK as part of a cost-saving restructure, the coffee chain said.

Most of the stores earmarked for closure are in North America and its chief executive said the revamp would reduce wait times and help revive sales.

It comes after Starbucks announced in February that it was axing 1,100 jobs and simplifying its US menu to help flagging sales in its home market.

“This is a more significant action that we understand will impact partners and customers,” chief executive Brian Niccol said in a statement, though the firm said it is still “on track” to open 80 new stores in the UK.

“While the EMEA [Europe, Middle East and Africa] business is on track to meet its commitment to open 80 new stores in the UK and 150 across EMEA this financial year, some stores in the UK, Switzerland and Austria will close as a result of this portfolio review”, Mr Niccol added.

He said in a letter to employees that the stores marked for closure were “unable to create the physical environment our customers and partners expect, or where we don’t see a path to financial performance”.

Starbucks added that the job cuts would be in its support teams, rather than its front-of-house baristas.