Starbucks Faces Critical Restructuring Amid Persistent Sales Slump

The iconic coffee chain confronts its most significant operational challenge to date as it implements a billion-dollar transformation plan. This strategic overhaul coincides with the unexpected departure of a key technology executive, creating additional turbulence during a period when Starbucks seeks to reverse six consecutive quarters of declining sales in its crucial U.S. market.

Starbucks is moving forward with aggressive cost-cutting measures under its “Back to Starbucks” initiative. The comprehensive plan involves shuttering hundreds of locations across North America while eliminating nearly 900 corporate positions. These drastic operational changes come with substantial financial implications, requiring approximately $1 billion in restructuring charges, most of which will be recorded within the current fiscal year.

Compounding these challenges, Chief Technology Officer Deb Lefevre... Read more...