Title: Starbucks’ Turnaround Strategy: Closing Stores and Laying Off Workers – A Necessary Evolution? In recent years, Starbucks has been facing stiff competition in the coffee industry, with customers opting for cheaper options or upgrading to fancier shops. In an effort to regain its footing, CEO Brian Niccol implemented a turnaround plan that involved significant changes within the company. As part of this strategy, Starbucks is set to close some stores and lay off 900 corporate employees in the U.S. and Canada. This move will result in a decline of about 1% in store numbers, with nearly 18,300 locations remaining by the end of the fiscal year. This decision comes after Starbucks had already cut 1,100 jobs back in February as part of its first wave of cost-cutting measures. The aim behind these layoffs and closures is to redirect more funds towards store improvements, such as adding more baristas, speeding up service, and enhancing the ambiance. Niccol’s turnaround plan has been quite ambitious, with changes ranging from reducing menu options by almost a third to introducing drinks ready in four minutes or less and no additional charges for non-dairy milk alternatives. The company is also working on redesigning its stores to encourage longer stays, offering ceramic mugs and free refills of coffee or tea for those who choose to stay in the cafe. In a memo sent out to employees, Niccol emphasized that their goal was “to deliver a warm and welcoming space with great atmosphere and a seat for every occasion.” While these changes may seem drastic at first glance, they are necessary if Starbucks wants to remain competitive in today’s market. The coffee industry has evolved significantly over the past few years, with consumers demanding more variety, convenience, and personalized experiences. By streamlining its operations and focusing on providing a better overall experience for customers, Starbucks is taking steps towards regaining its position as a leader in the industry. In conclusion, while it may be difficult to see layoffs and store closures as positive developments, they are part of an essential evolution process that will ultimately help Starbucks bounce back from recent setbacks. As long-time fans of the brand, we eagerly await seeing how these changes unfold in practice and hope for a brighter future ahead for our favorite coffee chain.
Source: [Original Article](https://www.npr.org/2025/09/25/nx-s1-5553386/starbucks-closes-stores-cuts-900-jobs)
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