Starbucks Corp (NASDAQ:SBUX, ETR:SRB) announced on Thursday that it will close underperforming stores in North America and eliminate 900 jobs in a $1 billion restructuring effort.
The move comes as the beverage retail giant has recorded six straight quarters of sales decline in the US as competition heats up.
Reuters reported that Starbucks CEO Brian Niccol has focused on investing in the company's stores to reduce service times and restore a coffee-house environment, while also cutting management layers in his first year on the job.
The company said it expects most of the store closures to be completed by the end of the fiscal year, reducing its company-operated store count in North America by about 1%.
Niccol noted that Starbucks would end the fiscal year with nearly 18,300 total locations across the US and Canada.
He added that the job cuts would be in its support teams and the company would also close many open positions.
Starbucks stock slipped nearly 1% to $83.49 in late-morning trading on Thursday.