Starbucks announces store closures, 900 layoffs
Starbucks announces store closures, 900 layoffs
00:24
At least five Starbucks stores in Philadelphia will close starting Sunday, after the company’s CEO announced they will shut down underperforming locations and cut 900 jobs.
The closures come after the company said it was reviewing its North America coffeehouse portfolio in an effort to ensure each location is a “warm and welcoming space with a great atmosphere and a seat for every occasion.”
The coffee chain’s CEO said it pinpointed the locations that were unable to cultivate the envisioned physical environment for both the customers and partners. It also identified the stores where the company didn’t see a path to financial performance. As a result of this review, those select Starbucks locations will be closed.
“Each year, we open and close coffeehouses for a variety of reasons, from financial performance to lease expirations,” Starbucks CEO Brian Niccol announced on Thursday. “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.”
Niccol said affected workers will be offered positions at other nearby stores.
CBS News Philadelphia confirmed five of those locations are in Philadelphia. Here are the stores that will be shut down.
List of Starbucks closing
- 1709 Chestnut Street
- 1128 Walnut Street
- 1900 Market Street
- 1801 Spruce Street
- 490 N Broad Street
The company also plans to eliminate 900 non-retail jobs and close many open positions. This comes as part of the company’s plans to invest more into customer service, increase staffing in stores and store design. Starbucks said non-retail employees will be offered severance packages and extended benefits.
The coffee chain expects its North American store count to decline by about 1% and to have nearly 18,300 company-operated stores across the U.S. and Canada by the end of fiscal year 2025.