Starbucks BioSnap a weekly updated Biography.
Starbucks is in the midst of a major upheaval that's been making waves across the industry over the past few days. The coffee giant has been executing a sweeping one billion dollar restructuring plan that's hitting both employees and customers hard.
The New York Post recently reported that dozens of NYC locations abruptly closed in what employees are calling a chaotic downsizing with no warning whatsoever. This comes as Starbucks announced it's shuttering roughly 180 stores across North America by the end of 2025, representing about one percent of its total footprint. California has been particularly hard hit, with nearly 30 stores closing throughout the state, including multiple locations in Los Angeles, San Francisco, and San Diego.
The store closures are just one piece of the puzzle. Starbucks is also eliminating 900 corporate positions as part of this massive cost-cutting initiative. Simply Wall Street noted that the company's stock has dropped over 13 percent this year, reflecting investor skepticism about the turnaround strategy under CEO Brian Niccol.
What's particularly striking is that 59 unionized locations are on the chopping block, raising questions about the company's labor relations during this difficult period. Newsweek compiled the most recent data showing the company expects to finish the year with 18,300 coffeehouse locations across the US and Canada.
Despite these challenges, Starbucks is trying to pivot back to basics with its Back to Starbucks strategy and Green Apron model, aiming to enhance customer experience and reduce service times. The company is also pushing marketing efforts, particularly in the Middle East where it launched the Original Knows Original campaign celebrating individuality.
On a lighter note, the Pumpkin Spice Matcha Latte has been gaining serious traction on social media as an alternative to the classic Pumpkin Spice Latte, with Starbucks even adding it to temporary offers on its app due to overwhelming demand. But this cultural moment feels overshadowed by the stark reality that hundreds of stores are closing and nearly a thousand corporate employees are losing their jobs in what appears to be one of the most dramatic restructurings in the company's history.
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