Starbucks to Cut Jobs, Close Stores and Take $1 Billion Hit in Revamp Effort

In a bid to revitalize its business, Starbucks has announced plans to close underperforming stores and eliminate a significant number of corporate jobs, resulting in a costly restructuring effort. The Seattle-based coffee giant revealed that it will be shutting down some of its U.S. locations that have been struggling to attract customers, while also cutting 900 jobs from its corporate workforce.The move is part of a broader strategy aimed at building "a better, stronger and more resilient Starbucks," according to the company. While the exact locations of the stores slated for closure have not been disclosed, the company confirmed that the impacted sites will be those that have consistently underperformed in recent years.The restructuring effort is expected to come with a hefty price tag, with Starbucks anticipating a hit of around $1 billion. The company plans to use this revamp as an opportunity to reposition itself for long-term growth and profitability. By streamlining its operations and shedding underperforming assets, Starbucks aims to become more agile and responsive to changing consumer preferences.Details of the company's plans to support affected employees have not been fully disclosed, but it is understood that those impacted will receive comprehensive severance packages. The job cuts and store closures mark a significant shift for Starbucks, which has been a dominant player in the global coffee market for decades. As the company works to reposition itself for future success, investors and customers alike will be watching closely to see how the revamp unfolds.