Lay off again! Starbucks permanently closes the world's first baking workshop!

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Recently, CNN, Associated Press and other American media reported that Starbucks, the world-renowned coffee chain giant, announced a $1 billion restructuring plan, closing some poorly operating self-operated stores and laying off employees.

According to reports, according to Starbucks 'documents filed with the U.S. Securities and Exchange Commission (SEC) on the 25th, the company plans to complete most store closures before the end of fiscal year 2025. It is expected that the store closures, support for organizational transformation and other restructuring activities will cost $1 billion, of which $150 million is employee severance payments, and $850 million is used for store closings related expenses including lease termination and asset disposal.

Starbucks CEO Nicole said in an open letter to employees that during the review process, the company found that some stores had failed to meet financial goals or failed to create the environment customers expected, so it decided to close some stores in North America, and the decision took effect immediately.

Although Starbucks did not disclose the specific number of stores closed, foreign media reported that Starbucks 'reorganization plan will close hundreds of coffee shops in the United States and Canada, including its world's first roasting workshop on Capitol Hill in Seattle, USA, and SODO Reserve stores in the company's headquarters building.

According to public information, Starbucks Seattle Baking Workshop was opened in 2014 and is one of the must-visit check-in places for many Starbucks fans around the world after arriving in Seattle. However, judging from the pictures shared by American netizens, a store closure notice has been posted at the entrance of this baking workshop, which has special significance to Starbucks. The store windows are sealed with black wooden boards, attracting many passers-by to stop and watch. Google Maps also A reminder that the store is closed appears.

It is worth mentioning that the Seattle Baking Workshop is also one of the first unionized stores in the brand's history, and union members once held demonstrations and protests here. Therefore, regarding the permanent closure of stores without warning, some employees speculated that the company was doing it to suppress trade unions.

The Starbucks union, which represents Starbucks employees, said in a statement,"We have once again experienced the formulation of new policies and major decisions without the participation of baristas," revealing that union stores have a "high proportion" in the store closure list, saying it plans to issue a formal request to the company requesting it to provide information on store closures and assist in the transfer of employees at each store.

At the same time, media reports also mentioned that about 900 non-retail employees will receive notices of dismissal from the company on Friday, which is the second round of layoffs for Starbucks since Nicole took office as CEO. In February this year, Starbucks laid off 1100 company employees. In response, the brand said the move was to further reduce non-retail positions and related expenses.

However, Starbucks 'rare store closures do not only involve North America, but also European stores on the other side of the ocean may be affected.

British media reported that Starbucks revealed,"Although business in Europe, the Middle East and Africa is proceeding as planned, and it is expected to open 80 new stores in the UK and 150 new stores in Europe, the Middle East, Africa and other places this fiscal year, some stores in the UK, Switzerland and Austria will be closed due to this portfolio review."

Picture from: Internet

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