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Starbucks slashing 900 jobs, closing hundreds of stores in $1B cost-cutting plan

1. Starbucks plans to close underperforming stores and cut 900 jobs. 2. CEO Niccol aims to enhance store environment and improve service times. 3. Brand has seen six quarters of declining sales due to tough competition. 4. Job cuts will mostly affect non-coffee-house roles and open positions. 5. Starbucks stock increased 9% since Niccol's appointment in August.

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FAQ

Why Bullish?

The restructuring plan indicates a strategic shift to enhance profitability. Historical examples show companies like Chipotle saw stock appreciation following similar restructuring efforts.

How important is it?

The restructuring plan is critical for reversing sales declines and enhancing operational performance, directly impacting stock sentiments.

Why Short Term?

Immediate impacts are expected from store closures and job cuts, affecting operational efficiency. Long-term effects could emerge as customer experience improves.

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