New York (CNN) — Starbucks is taking “significant action” to turn around its struggling business, closing a large number of cafés and announcing a second round of layoffs at its headquarters as part of CEO Brian Niccol’s efforts to resuscitate the troubled chain.

Niccol announced Thursday that Starbucks will close hundreds of stores this month, or about 1% of its locations. The company had 18,734 North American locations at the end of June, and the company said it will end September with 18,300 stores.

The company expects its restructuring efforts will cost $1 billion. Shares of Starbucks ( SBUX ) were flat in premarket trading.

In a letter to employees, Niccol said the company underwent a review of its footprint and the locations that will close were ones “unable to create the physi

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