Starbucks is taking “significant action” to turn around its struggling business, closing a large number of stores and announcing another round of layoffs at its headquarters as part of CEO Brian Niccol’s efforts to revive the fortunes of  the struggling brand. Like the recent store remodel changes that have been reversed at Cracker Barrel, Starbucks‘ new designs, including many in Tennessee, have produced a lot of customer rejection.

Niccol announced Thursday that Starbucks will close hundreds of stores this month, or about 1% of its locations. The company had 18,734 North American locations at the end of June, and it stated that it will end September with 18,300 stores.

The company expects its restructuring efforts to cost $1 billion.

In a letter to employees, Niccol said the company underwent a review of its footprint and the locations that will close were ones “unable to create the physical environment our customers and partners expect, or where we don’t see a path to financial performance.”

Starbucks often closes locations for various reasons, including underperformance. But Niccol said this larger-scale effort is more substantial.

“This is a more significant action that we understand will impact partners and customers. Our coffeehouses are centers of the community, and closing any location is difficult,” he said.

Despite the hundreds of closures, which will take place before the end of the company’s fiscal year next week, Starbucks said it will return to growth mode, and it also plans to remodel more than 1,000 locations. The new look for Starbucks features cozier chairs, more power outlets, and warmer colors. The new plan represents a dramatic reversal of Starbucks’ recent redesign changes, which had moved towards eliminating traditional coffeehouse atmospheres and replacing them with speedy pick-up locations, most of which had no seating for customers.

In addition to the store closures, Starbucks announced an additional 900 corporate layoffs, on top of the roughly 1,000 layoffs in February. Affected employees will be notified on Friday and will receive “generous severance and support packages.” Also, “many” open positions will be closed, he announced.

“I know these decisions impact our partners and their families, and we did not make them lightly,” Niccol wrote. “I believe these steps are necessary to build a better, stronger and more resilient Starbucks that deepens its impact on the world and creates more opportunities for our partners, suppliers and the communities we serve.”

Niccol joined Starbucks about a year ago, hoping to revive the storied coffee chain. However, the financial results haven’t come to fruition with the stock down about 12% and sales haven’t turned around.

He’s pared back the menu by about 30%, while also introducing new items to keep the the brand on trend, like protein toppings and coconut water. Food is also getting a revamp, with new croissants and baked goods being rolled out.

In addition to remodels, smaller touches have been integrated like bringing back self-serve milk and sugar stations. The company also tweaked its name to “Starbucks Coffee Company” to reinforce its coffee roots.

His previous changes have provoked backlash from some baristas, particularly uniform changes that sparked a lawsuit. And some new drink offerings have generated complaints from baristas for being overly complicated.

Starbucks also became briefly embroiled in the Charlie Kirk controversies when a barista wrote a hateful message on a customer’s cup.  The employee was fired quickly, but the story generated national news.