Starbucks to lay off 900 employees, close some locations

Starbucks has announced it will be closing some locations and laying off hundreds of employees.

The coffee chain announced on Thursday that it will be “reducing non-retail headcount and expenses” by laying off 900 “current non-retail partner roles and close many open positions.”

The company will also be closing locations “where we’re unable to create the physical environment our customers and partners expect, or where we don’t see a path to financial performance.”

The announcement was made in a letter from Starbucks Chairman and CEO Brian Niccol.

Those whose positions will be eliminated will find out on Friday, with the company saying they will receive a severance and support package, including extensions of their benefits. Employees are also being told that unless their job requires them to be in an office, they should work from home on Thursday and Friday.

For employees in stores that will be closing, the company said they will be told this week and will be “working hard” to offer transfers to other locations. If they cannot be transferred, they will also get “comprehensive severance packages.” They may also be brought back when new locations open,

Niccol also promised that there will be more hours for coffeehouse employees, more staff in the stores and new designs with “innovation to create the future,” all in an effort to “carefully manage costs” and “drive long-term growth.”

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