restructuring

Starbucks says it will close underperforming stores across North America as CEO Brian Niccol pushes ahead on a company restructuring effort, which is expected to cost $1bn in a bid to revive the company’s flagging sales.

The coffee chain announced the decision on Thursday.

Overall, store count in the United States and Canada is expected to drop by 1 percent, or several hundred stores, by the end of the 2025 fiscal year, including its iconic Seattle roastery.

Niccol is trying to restore the chain’s “coffeehouse” feel to bring customers back to its outlets after six consecutive quarters of declining US sales.

The cuts are expected to affect 900 workers and follow 1,100 corporate cuts earlier this year. But the cuts are underscored by Niccol’s compensation package valued at $95.8m last year, 6,666 times more than the average barista. It is the largest CEO-to-worker pay gap of any company in the S&P 500, according to the Institute for Policy Studies’s 2025 executive excess report.

Unionised stores hit

Among the closed stores was Starbucks’s flagship unionised location in Seattle, a large cafe with an in-house roastery, the company confirmed.

Talks between Starbucks and the Workers United union, which represents more than 12,000 baristas, began last April, but have hit a wall since.

In December, some members of the union walked off their jobs in multiple US cities in a strike that spanned several days during the peak holiday season.

Workers at the Seattle store, which is located near its headquarters, voted to unionise in 2022, and the union picketed the store on Monday over contract negotiation disputes.

A unionised store in Chicago, on Ridge Avenue, was also closed, the union confirmed. Baristas at the store were picketing on Thursday morning, in a plan made before the store’s closure was known, the union said.

Baristas on the picket line came from stores across the Chicago area. “We’re here to remind the company that it’s the workers who actually bring the people into the stores,” said Diego Franco, who came from a store in the Chicago suburb of Des Plaines.

A Starbucks spokesperson said the union status of stores was “not a factor in the decision-making process.”

In a statement, Starbucks Workers United criticised the closures. “It has never been more clear why baristas at Starbucks need the backing of a union,” the union said, adding that it planned to bargain for affected workers so they could be transferred to other stores.

Analysts at TD Cowen estimate that about 500 North American company-owned stores were affected by the restructuring.

A revamp attempt

In his first year on the job, Niccol has zeroed in on investing in Starbucks’s stores to reduce service times and restore a coffee-house environment, while also trimming management layers.

The company has posted a string of quarterly sales declines in the US as demand for its pricey lattes took a hit from consumers turning picky and competition ramping up.

“During the review, we identified coffeehouses where we’re unable to create the physical environment our customers and partners expect, or where we don’t see a path to financial performance, and these locations will be closed,” Niccol said in a letter to employees.

The CEO said the company would end the fiscal year with nearly 18,300 total Starbucks locations – company-operated and licensed – across the US and Canada. This compares to the 18,734 locations disclosed in a July regulatory filing.

Niccol has enjoyed the confidence of investors since taking over after his leadership at Chipotle Mexican Grill, where he is credited with leading a turnaround at the burrito chain.

“Starbucks is taking more aggressive actions within turnaround efforts. The store closures are more than we anticipated, while we believe the layoffs fit within management’s previously announced zero-based budgeting framework,” TD Cowen analyst Andrew Charles said.

Starbucks said on Thursday the job cuts would be in its support teams and added the company would also close many open positions.

The company employed about 10,000 people in non-coffee-house roles in the US, as of September 29, 2024.

“This is a more significant action that we understand will impact partners and customers,” Niccol said.

At the same time, Starbucks is investing in improving staffing and incorporating technology to more efficiently sequence orders at its coffee shops and enhance customer experience.

The company said earlier this year it would eliminate 1,100 corporate roles. In August, it also announced a modest 2 percent hike to all salaried employees in North America this year.

POUNDLAND has confirmed the full list of 12 more store closures amid a massive restructuing.

Sites across Canterbury, Coventry and Brigg have been named as destinations due to shut.

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Poundland’s retail director Darren MacDonald said:“While our anticipated network of around 650-700 stores remains sizeable, it is of course, sincerely that we’re closing a number of stores to allow us to get us back on track.

“We entirely understand how disappointing it will be for customers when a store nearby, closes but we look forward to continuing to welcome them to one of our other locations.

“Work is underway to with colleagues through a formal consultation process in stores scheduled to close, exploring any suitable alternative roles.”

You can check out the full list of closures here:

• Brigg: Cary Lane, Brigg, DN20 8EY
• Canterbury: Unit 2A, Marshwood Close Retail Park, Canterbury, CT1 1DX
• Coventry: 63 Hertford Street, Coventry, CV1 1LB
• Newcastle: Unit 15-18, Killingworth Centre, Newcastle-upon-Tyne, NE12 6YT
• Kings Heath: 74-76 High Street, Kings Heath, B14 7JZ
• Peterborough: Unit 19, Orton Gate Shopping Centre, PE2 5TD
• Peterlee: 32 Yoden Way, Castle Dene Shopping Centre, Peterlee, SR8 1AL
• Rainham: 12 Rainham Shopping Centre, Rainham, Gillingham, ME8 7HW
• Salford: Unit C Regent Retail Park, Ordsall Lane, Salford, M5 3TP
• Sheldon: 2192 Coventry Road, Sheldon, Birmingham, B26 3JE
• Wells: 27-29 High Street, Wells, Somerset, BA5 2AA
• Whitechapel: Units 2-5, 75 Whitechapel Road, London, E1 1DU

Warner Music Group will lay off an unspecified number of employees as part of a months-long restructuring plan to cut costs, Chief Executive Robert Kyncl said in a memo to staff Tuesday.

Kyncl said in the memo that the plan to “future-proof” the company includes reducing annual costs by roughly $300 million, with $170 million of that coming from “headcount rightsizing for agility and impact.” The additional $130 million in costs will come from administrative and real estate expenses, he said.

The cuts are the “remaining steps” of a period of significant change at the company, Kyncl said, with previous rounds of layoffs and leadership switch-ups happening in the last two years as he worked to “transform” the company.

“I know that this news is tough and unsettling, and you will have many questions. The Executive Leadership Team has spent a lot of time thinking about our future state and how to put us on the best path forward,” Kyncl said in the internal memo that was reviewed by The Times. “These decisions are not being made lightly, it will be difficult to say goodbye to talented people, and we’re committed to acting with empathy and integrity.”

It’s unclear how many employees will be laid off or what departments will see cuts, but Kyncl emphasized the company will be focused on increasing investments in its artists and repertoire department and mergers and acquisitions.

Hours before the news of layoffs, the company announced a $1.2-billion joint venture with Bain Capital to invest in music catalogs. The collaboration will add to the company’s catalog-purchasing power across both recorded music and music publishing, Kyncl said.

“In an ever-changing industry, we must continue to supercharge our capabilities in long-term artist, songwriter, and catalog development,” he wrote. “That’s why this company was created in the first place, it’s what we’ve always been best at, and it’s how we’ll differentiate ourselves in the future.”

In 2024, Warner Music laid off 600 employees, or approximately 10% of its workforce, and in 2023, 270 jobs were cut.

Warner Music Group shares closed at $27.83, up 2.17%, on Tuesday.

A MAJOR fashion chain is preparing to close another store ahead of a restructuring which has placed up to 230 stores at risk.

River Island will shutter a branch in Banbury on June 28, giving customers just a few days to say their goodbyes.

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A social media post revealed the tragic news, with locals in the area branding the move as “depressing”.

One resident of the area said: “Soon won’t be any big shops open in Banbury, getting like a ghost town.”

Another shopper added: “If people stopped buying online it wouldn’t happen.”

While a third added: “Gutted…..love River Island.”

The fashion brand, which has been sported by Paris Fury and Cat Deeley, has quietly closed a number of stores in the past few months.

A branch in Willows Place, Corby closed in April and a separate site in Vicar Lane Shopping Centre in Chesterfield closed in the same month.

The Sun has contacted River Island for a comment.

News of the closure comes days after it was revealed that up to 230 of the retailer’s stores are at risk.

The retailer is set to undergo a restructuring due to tough trading conditions.

The owners of River Island have brought in advisers from PricewaterhouseCoopers (PwC) to come up with money-saving solutions, reports Sky News.

The proposals are expected to be finalised in a matter of weeks, though sources have reportedly claimed no decisions have been approved on the retailer’s future.

Accounts for River Island Clothing Co for the year ending December 30 2023 showed the firm made a £33.2million pre-tax loss.

Then the turnover during the following 12 months fell by more than 19% to £578.1million.

In January, River Island hired consulting firm, AlixPartners, to undertake work on cost reductions and profit improvement.

However it is now understood PwC has now taken over.

TROUBLE FOR BRITISH FASHION BRANDS

A rise in online shopping coupled with Brits having less money to spend at the till has created problems for fashion brands.

New Look has closed a number of stores in the UK and it’s entire estate in the Republic of Ireland.

Bosses at the women’s fashion brand have blamed hikes to National Insurance for the move.

Earlier this year, Select Fashion closed 35 branches across the UK after it entered into liquidation.

Ted Baker was also forced to close over 30 stores last year after it went bust.

HOBBYCRAFT will shut nine stores in days with huge closing down sales launched.

Sites across Bristol, Dunstable, Borehamwood and Basildon are all set to close on June 21, The Sun can reveal.

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A further two sites in Essex and one in Gloucestershire are also set to close, with a site in Kent closing earlier this year.

The impacted stores are part of at least nine Hobbycraft stores that have been earmarked for closure this year.

News of the closures has come as a blow to locals in the area, with Bristol residents describing it as a “shame”.

While another said the store would be missed and they needed to find another “rainy day activity”.

A Kent local said: “Oh noooooo it’s the only one I go to regularly as the rest are too far away!”.

Another resident said they would “need therapy” following news of the closure.

Closing down sales have also been launched across the stores, with up to 70% off on some items.

It comes as new owner Modella Capital is launching an overhaul after buying Hobbycraft in August last year.

Modella also agreed to purchase WHSmith’s high street business earlier this year.

The move is set to impact between 72 and 126 jobs.

It is said the shake-up will help secure the future of 99 stores and around 1,800 jobs across the arts and crafts business.

You can check out the full list of stores earmarked for closure below.

• Canterbury, Kent – closed 
• Basildon, Essex – June 21
• Borehamwood, Hertfordshire – June 21
• Bristol, Imperial Retail Park – June 21
• Dunstable, Bedfordshire – June 21 
• Epping Forest, Essex – June 21
• Lakeside Shopping Centre, Essex – June 21
• Cirencester, Gloucestershire  -June 21
• Bagshot, Surrey – June 21

OTHER STORE CLOSURES

Hobbycraft is not the only retailer facing hard times.

Up to 11 Original Factory Shops stores are to set to close this month, including sites across Worcestershire, Durham and Cumbria.

Meanwhile, another five stores across Nairn, Market Drayton, Troon, Blairgowrie and Castle Douglas have been put up for sale.

It comes as part of a major restructuring carried out by new owner Modella Capital with a number of loss-making stores having to close as result.

You can see the full list of store closures here:

• Milford Haven, Pembrokeshire – June 26
• Perth – June 28
• Chester Le Street, County Durham – June 28
• Arbroath, Angus – June 28
• Kidwelly, Carmarthenshire – June 28
• Pershore, Worcestershire – June 28
• Normanton, West Yorkshire – June 28
• Peterhead, Aberdeenshire – June 28
• Shaftesbury, Dorset – June 28
• Staveley, Cumbria – July 12
• Middlewich – TBC

The following stores are also up for sale:

• Nairn
• Market Drayton
• Troon
• Blairgowrie
• Castle Douglas

It comes after pivate equity firm Modella bought The Original Factory Shop back in February and has since launched a restructuring effort to renegotiate rents at 88 TOFS stores.

At the end of April, Modella drew up plans to initiate a company voluntary arrangement (CVA) for TOFS.

Companies often use CVAs to prevent insolvency, which could otherwise result in store closures or the collapse of the entire business.

They allow firms to explore different strategies such as negotiating reduced rent rates with landlords.

May 9 (UPI) — Panasonic revealed during an online press conference Friday that it plans to cut 10,000 jobs from fiscal 2025 to fiscal 2026. Half will be cut in Japan and half overseas.

Panasonic Holdings President Yuki Kusumi cited “extremely high” costs relative to similar companies and said the big job cuts are necessary for company profit growth.

The company took an $895 million restructuring charge and forecasts a 15.3% profits decline in the year ending next March.

The job cuts will be made to transform and streamline unprofitable operations.

Kusumi said he would also return roughly 40% of his personal compensation amid the job cuts.

“Responsibility for management lies with me,” he said. “I feel very ashamed.”

“The Company will thoroughly review operational efficiency at each Group company, mainly in sales and indirect departments, and reevaluate the numbers of organizations and personnel actually needed,” Panasonic said in a statement.

Unprofitable operations will be terminated along with “the integration and closing of sites.”

The 10,000 job cuts are being carried out to optimize personnel on a global scale, according to Panasonic’s statement.

Panasonic said profit is expected to improve by $1.07 billion dollars as a result of the job cuts and restructuring.

“This measure targets 10,000 employees (5,000 in Japan and 5,000 overseas) at consolidated companies, and it will be implemented mainly in FY3/26, in accordance with the labor laws, rules, and regulations of each country and region,” Panasonic’s statement said.

May 3 (UPI) — The U.S. The Environmental Protection Agency is consolidating staff and shifting resources, part of a larger restructuring effort that will seek to “bring much needed efficiencies,” officials announced.

The agency is also planning to cut jobs as part of the shake-up, reducing staffing to levels seen during the 1980s, EPA Administrator Lee Zeldin said this week.

“With these organizational improvements, we recommit to fulfilling all of our statutory obligations and exceptionally delivering on EPA’s core mission of protecting human health and the environment. This reorganization will bring much needed efficiencies to incorporate science into our rulemakings and sharply focus our work on providing the cleanest air, land and water for our communities. It will also save at least $300 million annually for the American people,” Zeldin said in the agency’s statement.

Zeldin said the agency will strive to “operate as efficiently and effectively as possible,” signaling the possibility of looming job cuts.

The New York Times previously reported President Donald Trump‘s administration planned to fire over 1,500 scientists from the EPA at some point, citing an internal government document.

The agency had a workforce of 15,130 people and a $9.158 billion budget in the most recent fiscal year.

“This phase of reorganization will save taxpayers more than $300 million annually by Fiscal Year 2026. It is all part of a larger, comprehensive effort to restructure the agency, and when finalized, EPA expects to have employment levels near those seen when President Ronald Reagan occupied the White House,” the EPA said in a press release announcing the restructuring.

Under the directive, the focus will shift to strengthening partnerships with state-level agencies, particularly when it comes to air and water monitoring.

“In the Office of Air and Radiation, we’re establishing the first-ever Office of State Air Partnerships to improve coordination with state, local, and tribal air permitting agencies. This collaborative approach will resolve permitting concerns more efficiently and ensure EPA is working with states, not against them, to advance our shared mission,” Zeldon wrote in an op-ed written for Newsweek and republished on the EPA’s website.

Part of that will also see the creation of a new Office of Clean Air Programs.

The EPA also plans to begin consolidating staff to save on office space costs and prioritize approval of the use of certain chemicals currently under review.

“Under the previous administration, EPA’s buildings stood largely empty, with headquarters attendance peaking at just over one-third occupancy as the record high attendance day last year. Agency spending had ballooned from around $8 billion to $10 billion to more than $63 billion. Hundreds of new chemicals remained in regulatory limbo far beyond statutory review timelines, as did more than 12,000 pesticide reviews, and 685 State Implementation,” Zeldin wrote.

He pointed to some 504 new chemicals currently under EPA review beyond the statutorily required timeframe and more than 12,000 pesticides in a similar situation.

“The American people deserve an EPA that effectively balances environmental protection with economic prosperity,” Zeldin wrote.

“Through this reorganization, we’re positioning the agency to do just that.”