Starbucks (SBUX) Loses 5% on Restructuring, Leadership Changes

We recently published 10 Stocks Investors Are Dumping. Starbucks Corp. (NASDAQ:SBUX) is one of the worst performers on Monday.

Starbucks dropped for a second day on Monday, slashing 4.99 percent to finish at $82.11 apiece as investors unloaded portfolios to mitigate risks from development uncertainties, following news of workforce reduction and key leadership changes.

Over the past few days, Starbucks Corp. (NASDAQ:SBUX) Chief Executive Officer Brian Niccol announced that the company would close underperforming stores in the US, cut 900 non-retail partner roles, and freeze a number of job positions as part of its turnaround strategy.

Following a review of its North America portfolio, Niccol told employees that they were able to identify locations that were unable to create the physical environment our customers and partners expect,” and where it does not see a “path to financial performance.”

Niccol did not elaborate on the number of stores to be closed, but said that affected stores and employees will be notified immediately.

In other developments, Starbucks Corp. (NASDAQ:SBUX) announced that its chief technology officer, Deb Hall Lefevre, stepped down from her role without a permanent replacement. She will be temporarily replaced by Ningyu Chen, previously senior vice president of global experience technology.

Lefevre’s resignation followed announcements of a second round of deep cuts in corporate roles as Niccol pushes a technology revamp to make labor more efficient.

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Disclosure: None. This article is originally published at Insider Monkey.