Good morning. As Starbucks tries to evoke nostalgia for its brand, the company is undergoing a major restructuring, including corporate layoffs and costly changes as part of its turnaround plan. This move highlights the importance for companies to stay focused on what customers love, or risk losing ground to competitors.
The Starbucks board approved a $1 billion restructuring plan this week that will close underperforming coffeehouses and reshape its corporate support organization under the “Back to Starbucks” strategy, according to an SEC filing. About 90% of these expenses will come from its North American business, and most costs will hit in fiscal 2025.
