Starbucks Announces Restructuring Plan as Part of 'Back to Starbucks' Strategy

Details

The plan includes reducing the operational complexity of its Starbucks Reserve and Roastery locations and optimizing its global support organization. The company expects to incur approximately $400 million in restructuring charges, with $280 million being non-cash charges due to impairment of long-lived assets and $120 million being cash charges primarily related to employee separation benefits. The majority of the plan actions are expected to be completed by the end of this fiscal year.

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About Starbucks Corporation

Starbucks Corporation is a renowned global leader in the coffeehouse industry, offering a wide array of beverages including coffee, tea, and other specialty drinks, alongside complementary food items. The company operates retail locations worldwide, providing customers with a unique coffeehouse experience characterized by quality products and a welcoming atmosphere. Beyond its physical stores, Starbucks significantly impacts the coffee production industry, promoting sustainable sourcing and ethical supply chain practices. Its operations extend into grocery and convenience stores through products like ready-to-drink beverages and consumer-packaged coffee. Founded in 1971 and headquartered in Seattle, Washington, Starbucks Corporation is pivotal in shaping consumer beverage preferences and enhancing global coffee culture, influencing both retail and wholesale sectors.