Starbucks will close approximately 1% of its locations and will lay off 900 corporate employees to restructure its business.

CEO Brian Niccol announced significant measures for the recovery of Starbucks, including the closure of hundreds of cafes and a second round of layoffs at the headquarters. The company will close approximately 1% of the 18,734 locations in North America, estimating that the restructuring will cost $1 billion. Niccol emphasized that the closures are a significant action, affecting local communities. In addition to closures, Starbucks will renovate over 1,000 locations and will lay off 900 employees, offering them support packages.