Sept 25 (Reuters) - Starbucks ( SBUX ) said on Thursday

it would close underperforming coffee shops, mainly in North

America, and cut about 900 jobs as part of a restructuring plan

under CEO Brian Niccol that would cost about $1 billion.

The company has been revamping its U.S. operations under

Niccol's strategy to restore a traditional coffeehouse

atmosphere in stores by reducing wait times in a bid to revive

sales, while also trimming management layers.

"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.

Starbucks ( SBUX ) said 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 U.S, as of September 29, 2024.

"This is a more significant action that we understand will

impact partners and customers," Niccol said.

Overall company-operated store count in North America would

decline by about 1% in fiscal year 2025, taking into account

closures under the restructuring plan, as well as stores it has

opened so far this year, the letter said.

Starbucks ( SBUX ) is trying to reduce expenses at a time when demand

for its pricey lattes has tempered in the United States.

The company said in August it would provide a modest 2% hike

to all salaried employees in North America this year.

Starbucks ( SBUX ) is also trying to sell a stake in its China

business, which is battling increased competition and weak

demand.

The company's shares were flat in premarket trading. They

have fallen 7.7% so far this year.

(Reporting by Juveria Tabassum in Bengaluru; Editing by Leroy

Leo and Sriraj Kalluvila)