Thousands of workers will be laid off as major retailer closes all North American locations
Hundreds of Canadian workers are expected to lose their jobs as Starbucks closes its Teavana stores across North America.
All 379 locations will shutter by spring of 2018, with Teavana’s 54 Canadian stores to be first, closing down by the end of September.
In total, about 3300 employees in the US and Canada will lose their jobs. Starbucks did not immediately respond to a request from HRD about the exact number of Canadian workers affected.
"Following a strategic review of the Teavana store business, the company concluded that despite efforts to reverse the trend through creative merchandising and new store designs, the underperformance was likely to continue," Starbucks said in a statement.
It added that the laid-off workers would be able to apply for roles at its namesake stores.
The company took over the primarily mall-based Teavana chain in 2012. However, its future has been under review since April, due to slumping sales as fewer people visited malls.
Starbucks announced the closures as it reported a four percent rise in global sales, while its US sales grew five percent.
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All 379 locations will shutter by spring of 2018, with Teavana’s 54 Canadian stores to be first, closing down by the end of September.
In total, about 3300 employees in the US and Canada will lose their jobs. Starbucks did not immediately respond to a request from HRD about the exact number of Canadian workers affected.
"Following a strategic review of the Teavana store business, the company concluded that despite efforts to reverse the trend through creative merchandising and new store designs, the underperformance was likely to continue," Starbucks said in a statement.
It added that the laid-off workers would be able to apply for roles at its namesake stores.
The company took over the primarily mall-based Teavana chain in 2012. However, its future has been under review since April, due to slumping sales as fewer people visited malls.
Starbucks announced the closures as it reported a four percent rise in global sales, while its US sales grew five percent.
Related stories:
Starbucks makes political recruitment promise
Coffee giant makes mental health pledge
Want the latest HR news direct to your inbox? Sign up for HRD Canada's daily newsletter.