Starbucks has announced plans to close about 250 underperforming coffeehouses in North America as the company continues efforts to improve the performance of its store network. 

The closures form part of a wider strategy to reshape the business and focus resources on stronger locations. 

The coffee chain has been working to improve sales and profitability after facing challenges including changing consumer habits and weaker traffic at some stores. 

Starbucks has been reviewing its locations as it seeks to make its operations more efficient.

The closures are significant because Starbucks has one of the largest coffee-shop networks in the world.

The company has been trying to balance maintaining a broad physical presence with ensuring that individual stores generate enough sales to justify their operating costs.

Starbucks is also investing in technology and other parts of its business. 

Earlier this week, the company announced plans to establish a global technology center in Chennai, India, where it expects to employ about 800 technology professionals. 

The combination of store closures and technology investment shows Starbucks’ attempt to restructure its operations while continuing to expand its digital and business capabilities. 

The company will be looking to improve efficiency without weakening its connection with customers.

Sources: Reuters; Starbucks.