Starbucks Said Thursday Its Closds Hundreds of Us and Canadian Stores – Including Several in Chicago – and Laying off 900 Nonretail Employees as it Focuses More of Its Resources on a Turnaround.
The Seattle Coffee Giant Said Store Cloves Wauld Start Immediately. Starbucks Said Affected Baristas Will Be Offered SeVERance Packages and Transfers to Other Locations Where
The Company Wauldn’t Give a Number of Storys that are CLOLLS But Said It Expects to Have 18,300 North American Locations when it fiscal ends on Sunday, which is 124 fewer than it has at the end of its 2024 fiscal year. As of June 29, The Company Had 18,734 Locations.
In a research not thighsday, TD Cowen Analyst andrew Charles Estimated Starbucks Will Close ARUND 500 North American Stoles in Its Fiscal Fourth Quarter.
The Company’s Edgewater Store, at 5964 N. Ridge Ave., Is Among the Locations Cling Saturday, Acciting to Starbucks Workers United. The Labor Group Represents 12,000 Baristas and Recently Won Its 650th Union ELECTION.
Picketed Workers Outside the Edgewater Store on Thursday Morning. The rally was planned before Starbucks’ Announcement. WORKERS HAD AIMED TO PRESS FOR A FAIR CONTRACT WITH THE COMPANY.
In December, Starbucks Workers Went on Strike in Three Cities, Including Chicago, to Protest the Lack of Progress in Contract negotiations with the Company. They included baristas at the north ridge avenue store. WORKERS ALSO WENT ON STRIKE AT THE BUCKTOWN STORE AT AGAINATION AND HOYNE HOYNE, AS WELL AS IN EVANSTON ON MAIN STREET.
Diego Franks at a Starbucks Store in des Plaines and Has Been A Barista, Trainer and Manager in Hisx Years with the Company. On Thursday, he joined fellow workers at the “Practice Picket” outside the Edgewater Store.
Franco Heard About the Store Clues and Layoffs on Thursday Morning But Wasn’t Surprised. Shutting story is “Another Tactic Out of the Same Textbook that Starbucks Follows,” He Said. “They Want their Bottom Line to Look Good for Investors.”
“Workers are fed up and Willing to do what what it was to get the company back to the negotiating table. This fight has been going on for Over four years now. We’ve out-Organized past four Ceos,” Franco Said. “It”s workers in the storys that Truly Hold the Power.”
As of Friday Morning, the Company’s Website notd which chicago storys would be closing, with at least three of me unionized. A Starbucks Spokesperson Said a Store’s Unionized Status “Is Not a Factor Well We Consider Whether to Close a Store.”
The Following Storys Were Set to Close Friday:
- 131 S. State St., Loop
- 209 W. Jackson Blvd., Loop
- 151 N. Michigan Ave., Loop
- 1520 W. Harrison St., Near West Side
- 120 S. Riverside Plaza, West Loop
These Locations Will Close Saturday:
- 5964 N. Ridge Ave. (Unionized), Edgewater
- 1174 E. 55TH St. (Unionized), Hyde Park
- 116 S. Halsted St. (Unionized), West Loop
- 1588 N. Milwaukee Ave., Wicker Park
- 1599 N. Clybourn Ave., Old Town
- 1430 W. Taylor St., Near West Side
- 111 E. Chestnut St., Streeterville
- 3232 W. Foster Ave., North Park
- 9438 S. Ashland Ave., Washington Heights
- 1730 W. Fullerton Ave., Lincoln Park
In a Letter Sent to Employees Thursday, Starbucks Chairman and Ceo Brian Niccol Said A Review of the Company’s Stories Identified Locations where the Company doesn’t see a Path to financial or isn’t able to create the Physical Environment CUSTOMERS. Those Stoles Are Being Closed.
“Each year, we open and close coffeeouse for a variety of reasons, from financial performance to lease expirations,” Niccol Wrote. “THIS IS A MORE SIGNIFICANT ACTION THAT WE UNDERSTAND WILL IMPACT Partners and Customers. Our CoffeaSeses are Centers of the Community, and Cling Any Location is Difficult.”
Starbucks Said IT Expects to SPEND $ 1 Billion on the Restructuring, Including $ 150 Million on Employe Separation Benefits and $ 850 Million Related to the Physical Store Closing and the Cost of Exaring Leases.
It was not immediately clear how many of the storys are closing are unionized. WORKERS AT 650 Company-Awned US Starbucks Storys have voted to Unionize SINCE 2021, but they have yet to reach a Contract Agreement with the Company.
Starbucks Workers United Said Thursday that the classes were made with the input from Baristas. The union said it inters to engage in the backer at every union-refresented store is closing to ennsure can be placed at another store.
“Fixing what’s Broken at Starbucks isn’t Possible with Centering the People Who Engage with the Company’s Customers Day in and Day Out,” The Union Said.
News of the Store CLUSES CAMES JUST OVER A AFT AFTER UNIONized Employees in Three States Sted Starbucks Over Its New Dress Code, Saying the Company Refused to Reimburs who Had to Buy New Clothes.
Starbucks plans to increase it north american store count in its next fiscal year, niccol said. The Company Also plans to redesign more than 1,000 locations in the Next 12 months to give a warmer, more welcoming her.
This is the Second Round of Layoffs at Starbucks This Year. In February, Niccol Announched The Layoffs of 1,100 Corplate Employees Globally and Eliminate Several Hundred Open Posions. At the time, he said starbucks Needed to operate more efficiently and increes Accountability for Decisions.
Niccol is a turnaround specialist who was brought into stars starbucks a year ago this month to give the brand a jolt. Under Niccol’s Leadership, The Struggling Chipotle Chain, Where Niccol Was Ceo For About Six Years, Essentially Double Its Revenue and Its Profit, Stock Price Sold.
In July, Starbucks Reported Its Sixth Straight Quarter of Lower Same-Store Sales, As Weak US Traffic Continue to be a drain on the Company. Niccol is trying to turn that around by adding staff, Making Stores cozier and introding software that helps prioritizes and makes sura customers can have their drinks with four minutes.
Contribing: AP
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