Starbucks Plans Store Closures, Layoffs: What To Know

Some Starbucks stores in the United States and North America could close in the coming days as the Seattle coffee giant focuses more of its resources on a turnaround, CEO Brian Niccol wrote in a letter to employees Thursday.

Niccol, who didn’t say in his letter which stores will be shuttered, also said about 900 non-retail partner roles will be eliminated and many open positions will be closed.

The Seattle coffee giant will notify employees whose positions are being eliminated early Friday and said that it plans to close an undetermined number of stores in North America in the coming days. Starbucks said Thursday that it expects to end its fiscal year with 18,300 stores in North America, down 124 from last year.

Niccol, a turnaround specialist who was brought to Starbucks a year ago to give the brand a jolt, said in the letter that a review of Starbucks locations revealed that many are falling short of financial performance targets or are failing to create the environment customers expect.

“Each year, we open and close coffeehouses for a variety of reasons, from financial performance to lease expirations,” Niccol wrote. “This is a more significant action that we understand will impact partners and customers. Our coffeehouses are centers of the community, and closing any location is difficult.”

Starbucks said it will offer severance and support packages for affected employees.

The Associated Press contributed reporting.