Starbucks is implementing a turnaround strategy amid challenges including higher coffee prices and tariffs. While global same-store sales fell 1% this quarter, it reflects an improvement. Global revenues increased by 2.3% to $8.7 billion, but net earnings plummeted 50% to $384.2 million year-over-year. In China, same-store sales remained flat, an improvement from prior declines. The CEO, Brian Niccol, noted that the company is hiring more baristas and is testing new programs to reduce customer wait times, while also announcing significant corporate layoffs to streamline operations.
During the quarter, Starbucks announced plans to cut 1,100 corporate employees while simultaneously hiring more baristas to support its turnaround strategy.
Despite a 50 percent drop in net earnings, Starbucks is seeing improvement in global revenues and same-store sales as part of its recovery efforts.
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