Starbucks is closing hundreds of locations

NEW YORK (CNN) — Starbucks is closing approximately 250 locations in the coming days as the coffee chain continues to prune its store count during its turnaround efforts.

The affected locations didn’t “deliver the experience we want for customers and partners” or aren’t financial viable, the company said in a statement. In total, the closures amount to 1% of Starbucks North American footprint of roughly 18,000 locations.

CEO Brian Niccol announced a similar amount of closures a year ago, along with corporate layoffs, as part of a $1 billion restructuring effort. He is spearheading a years-long plan to revamp its business and bring Starbucks back to growth. In North America, he unveiled café renovations, improved service and simplified the menu.

Starbucks will incur about $300 million in charges relating to the closures, according to a regulatory filing Thursday, $200 million of which comes from ending leases early and severance benefits for employees.

A list of locations weren’t immediately released. Customers will start seeing signs on affected cafés this weekend and the closures will be reflected in the app.

“We remain excited about the significant long-term growth opportunity ahead in North America,” COO Mike Grams wrote in a letter to employees, adding that the company is “actively developing a strong pipeline of new coffeehouses and remain committed to growth.”

Still, Starbucks is forecasted to only open about 440 new locations globally during this fiscal year, down from a previously announced 600 to 650 openings, according to the filing.

Starbucks sales returned to growth about a year ago, with same-store sales at its US locations jumping 7.9% during the company’s most recent quarter. Niccol said in its July earnings report it “was the quarter our momentum became truly measurable.”