Starbucks has announced plans to shut down hundreds of locations across North America.
Chief Operating Officer Mike Grams told employees in a letter that the stores slated to close do not deliver acceptable financial results or have the correct customer experience, The Associated Press reported.
The locations set to close have not been announced, nor has the number of U.S. locations that will be affected.
Gram said that the push to retrofit shops to make them cozier and inviting is progressing, with 1,500 expected to be completed by the end of the month.
For employees impacted by the closures, they will be transferred to other locations if possible or be given severance if that is not possible, the AP reported.
Starbucks laid off 300 corporate employees and closed some U.S. offices earlier this year.
It also closed several underperforming stores, including the Seattle roastery, last year, Reuters reported.
Starbucks operates about 18,000 locations in North America. It also expects to open about 440 either licensed or company-owned locations, instead of the 600 or 650 that it initially planned, according to Reuters.
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