Starbucks is set to lay off approximately 900 non-retail employees and close several stores in the United States and Canada as part of a strategic turnaround plan. The Seattle-based coffee company will inform affected employees on Friday and plans to shut down an unspecified number of locations in North America in the coming days.

A review of Starbucks locations indicated that many are not meeting financial performance targets or are failing to provide the customer experience expected. This information was shared in a letter from CEO Brian Niccol on Thursday. He stated, "Each year, we open and close coffeehouses for a variety of reasons, from financial performance to lease expirations. This is a more significant action that we understand will impact partners and customers. Our coffeehouses are centers of the community, and closing any location is difficult."

Starbucks anticipates ending its fiscal year with 18,300 stores in North America, a decrease of 124 from the previous year. It is uncommon for the company to reduce its store count during a fiscal year. Niccol, who joined Starbucks a year ago, is known for his turnaround expertise. Previously, he led Chipotle, where he significantly increased revenue and profit.

In response to the layoffs, Starbucks will provide severance and support packages to the employees affected by these changes.