Starbucks is closing several underperforming stores in the US and UK, impacting hundreds of employees as the company restructures to streamline operations. Image: Philip Toscano/PA/Archive.
(The Post News)– Starbucks is preparing to shut down several underperforming branches in the United States and United Kingdom, affecting hundreds of jobs in the process. Around 900 roles in the US are expected to be cut, mostly in support functions, as the company moves to streamline operations and reduce costs.
These closures follow an earlier round of job cuts announced in February, when the company trimmed 1,100 positions and simplified its American menu in response to declining sales. Consequently, the latest move is part of a broader strategy to improve customer experience and restore momentum in its largest market.
The decision to cut hundreds of jobs in the US is expected to affect not only the workers themselves but also the families who rely on those incomes. For many, these roles provided financial stability and access to healthcare benefits. As a result, the sudden loss of employment could lead to increased pressure at home, especially for those supporting children or caring for relatives, adding another layer of hardship to an already uncertain economic climate.
Starbucks UK Shut Down Prompted by Global Review
Starbucks will also be closing some stores in Switzerland, Austria, and the UK following a review of its global footprint.
The restructuring comes amid ongoing challenges, including falling US sales, increased competition from drive-through coffee brands, and growing pressure from unionized workers. Moreover, staff representatives have raised concerns about working conditions and decision-making processes, saying recent changes have been made without proper consultation.
Nevertheless, Starbucks leadership maintains that the changes are necessary to reposition the brand and improve long-term performance.
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