Starbucks closing locations amid corporate layoffs

In a statement Thursday, CEO Brian Niccol said Starbucks "identified coffeehouses where we’re unable to create the physical environment our customers and partners expect, or where we don’t see a path to financial performance, and these locations will be closed."

Coffeeshop employees will be offered transfers to other locations when possible or offered severance packages. In nonretail positions, 900 jobs will be cut.

Within the next year, Starbucks said the company plans to beautify over 1,000 coffeehouses and establish new locations across the U.S. Due to the changes, the company expects to spend $150 million on employee separation benefits and an additional $850 million related to closing stores and exiting leases.