Starbucks is considered one of the largest coffeehouse chains in the world. This was reported by Zamin.uz.
In recent months, the company has been forced to take serious measures due to financial difficulties and increased market competition. According to Starbucks management, nearly 400 stores will be closed in North America by the end of the month.
Approximately 900 employees are expected to lose their jobs during this process. Bloomberg reported on this situation.
The company made this decision to reduce costs and allocate existing resources more efficiently. Starbucks leaders aim to prevent customers from standing in long lines and increase sales volume in the most profitable stores.
In February, the company also decided to cut 1,100 jobs in the US and simplify the menu. Thus, within a year, the chain was forced to give up a total of 2,000 jobs in its home country.
According to CEO Bryan Niccol, the new cuts will be implemented not only in America but also in Europe. Specifically, some coffeehouses in the UK, Switzerland, and Austria will be closed.
Nevertheless, the company plans to open new sales points in the upcoming financial year. For example, 80 new stores are expected to open in the UK, and 150 new stores in Europe, the Middle East, and Africa.
Negative indicators in financial reports have also affected the company's shares. Since the beginning of the year, Starbucks securities have decreased in value by 8%.
Independent analysts say several factors have contributed to this situation. Among them, the increasingly popular “drive-thru” stores in the US pose serious competition to Starbucks.
According to survey results, more than 70% of customers reported visiting Starbucks stores less frequently due to high prices. Thus, the company faces not only the task of reducing internal costs but also important challenges such as pricing policy and maintaining customer trust.
