Starbucks is laying off around 900 non-retail employees and shutting some stores in the US and Canada as part of a broader turnaround strategy, the company announced on Thursday, AP reported. Employees whose roles are being eliminated will be informed early Friday, while the closures will be rolled out in the coming days.The Seattle-based coffee chain said a review of its North American locations showed many outlets were underperforming financially or not meeting customer expectations. “Each year, we open and close coffeehouses for a variety of reasons, from financial performance to lease expirations. This is a more significant action that we understand will impact partners and customers. Our coffeehouses are centers of the community, and closing any location is difficult,” Starbucks CEO Brian Niccol wrote in a letter to staff.Following the move, Starbucks expects to end its fiscal year with 18,300 stores in North America, down 124 from last year. It is unusual for the company to reduce its store count within a fiscal year.Niccol, a turnaround specialist brought in a year ago to revive Starbucks, previously led Chipotle through a dramatic recovery. During his six-year tenure there, the brand doubled its revenue and profit while its stock price soared.Starbucks said it will offer severance and support packages to employees affected by the layoffs.
