Starbucks announces the closure of hundreds of cafes and a second round of layoffs. CEO Brian Niccol shared the news on Thursday as part of a larger plan to improve the company’s performance.

Around 1% of Starbucks’ stores, roughly 400 locations, will shut down by the end of September. The company had 18,734 stores in North America at the end of June and expects to have about 18,300 by month’s end.

According to Niccol, the closures are based on a review that identified stores that could not meet customer and employee expectations or were not financially sustainable.

In addition to the store closures, Starbucks is cutting 900 more corporate jobs. This follows about 1,000 layoffs that were already announced back in February.

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