Starbucks to cut 900 jobs, close some underperforming stores

Starbucks said Thursday that it will eliminate 900 nonretail jobs and "close many open positions."The coffee retailer will also shutter some of its underperforming stores, CEO Brian Niccol told employees in a memo.

Starbucks said Thursday that it will eliminate 900 nonretail jobs and "close many open positions."

The coffee retailer will also shutter some of its underperforming stores, CEO Brian Niccol told employees in a memo.

Even with the closures, Starbucks will end the year with more than 18,000 locations, he added. Thursday's announcements will cost the company about $1 billion, it disclosed in a securities filing.

"The 'Back to Starbucks' strategy focuses on revitalizing coffeehouses and enhancing the customer experience," the company wrote. "As part of this strategy, the Company assessed its existing store portfolio with respect to both whether coffeehouses had a viable path to offering the physical environment consistent with the brand and a clear path to financial performance. It will close those coffeehouses that do not meet these criteria."

Brian Niccol in Dublin, Ohio, on May 28.Michael Reaves / Getty Images fileThe restructuring is the latest major change from Niccol, who was appointed to run the company just over a year ago. Earlier this year, Starbucks cut another 1,100 corporate jobs.