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SBUX
New York Post
111 days

Starbucks to hire thousands of baristas, scale back automation in bid to win back customers

1. Starbucks plans to hire thousands of baristas to improve customer service. 2. The hiring strategy reverses previous automation efforts that reduced labor costs. 3. CEO Niccol cites past automation assumptions as inaccurate for desired efficiency. 4. Starbucks faces sales decline, reporting a 1% drop last quarter. 5. Company shares fell over 6.5% post-earnings due to disappointment.

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FAQ

Why Bearish?

The stock has declined due to weak sales performance and strategy reversal, which may raise costs. Historical examples include companies whose over-automation hurt customer satisfaction and sales.

How important is it?

The announcement of staffing changes is significant as it directly impacts operational costs and customer experiences, key factors influencing SBUX's performance.

Why Short Term?

Immediate costs from hiring may affect profitability, impacting short-term stock performance like previous adjustments seen at major chains.

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