The retail giant will sell off 1,000 stores and shuttered stores in the U.S., Canada, Mexico and Brazil, including those that are in areas with large Mexican immigrant populations, a deal it hopes will help the company’s bottom line.
The company’s earnings report on Tuesday showed revenue declined 10% to $1,724 million for the quarter ended Nov. 29, and its net income fell 13% to almost $1 billion.
“The restructuring we undertook this quarter has enabled us to reduce our debt to our largest asset class, and it will help us to continue to invest in the growth of our businesses and our community,” Starbucks Chairman and CEO Howard Schultz said in a statement.
“It also underscores the strength of our global business and our ability to continue growing and expanding our company.
This is a tremendous accomplishment for our company and for the world.”
Starbucks is facing an intensifying crackdown on foreign workers in the United States after President Donald Trump signed an executive order last week aimed at cracking down on the labor shortage that has resulted in millions of workers being displaced from their homes.
The move prompted Starbucks to suspend production at its Mexico City, Mexico, plant and temporarily shut down a second plant in the country.
In a statement, Schultz said the U:S.
will “continue to have the ability to employ U.M.C. employees at all of our stores and at our stores across the U-M.S. border.”
Schultz added that Starbucks would invest $1 trillion over the next three years in its U..
He also said the company would continue to sell products in Mexico.
The announcement comes as the company faces another round of U.K. antitrust charges.
Starbucks is also seeking to get the U.-Korea trade agreement passed into law, according to the company.
In December, Starbucks and other tech companies said they were in talks with the Trump administration about the deal, which was aimed at helping U.N. trade talks.