Starbucks to cut 900 jobs and close dozens of North American stores as sales struggle | Starbucks
Starbucks will leave about 900 personnel and will pull down the blinds in 100 cafes in North America as part of a $ 1 billion reconstruction plan to revive the world’s largest coffee chain.
Eliminating 1,100 institutional positions earlier this year, the company will close the “many” open or empty position as it informs the employees affected by the interruptions made on Friday.
The company’s 900 Starbucks staff, which the restructuring works in the “non -withdrawal” roles. It will also close 1% of coffee houses in North America.
Starbucks is trying to reverse their reserves. The company’s US sales have fallen twice before ordering expensive coffee as consumers struggling with higher inflation for years.
Starbucks CEO, Brian Niccol, is designed to “strengthen what we see and prioritize our resources against them”. letter Thursday employees. “I believe that these steps are necessary to create a better, more powerful and more flexible Starbucks that deepen the impact on the world and create more opportunities for our partners, suppliers and communities we serve.”
However, Starbucks Workers United, a union representing workers in hundreds of stores, said in the chain that this movement “clarifies that things just go back”. “It is not possible to fix the broken people in Starbucks without centering the people of the company that interact with their customers every day,” he said.
Starbucks connected about 90% of the restructuring cost to North American business, $ 850 million is expected to cost $ 150 million working costs and costs related to store closing.
Starbucks also plans to “upgrade more than 1,000 stores in the next 12 months, and Niccol added,“ To offer more texture, temperature and layer design ”.
In his letter, Niccol did not mention the efforts from the union at Starbucks. More than 650 Starbucks stores in the United States unionized and workers pushed them for the first union agreement.
The negotiations between the Union and Starbucks fell months later after Niccol played the role of CEO last September, and the Union launched the biggest strike in December.
Unionized Starbucks employees criticized the changes under Niccol “Back to Starbucks” and under threat More strikes to force the company to reach the first contract with the union. There is Starbucks allegedly Fair is determined to negotiate.
“I know that these decisions affected our partners and their families, and we didn’t do them gently, Nic said Niccol said in a statement on Thursday. Starbucks shares dropped 1%.
