Starbucks CEO Brian Niccol on Thursday said the company is planning on closing underperforming locations, including those where the coffee chain is "unable to create the physical environment our customers and partners expect," and will cut 900 jobs.

The overhaul will cost $1 billion, according to a Thursday regulatory filing . Most of the costs are related to the store closures, such as $450 million in costs for breaking leases early. About $150 million will cover expenses for cutting the 900 employees, who Niccol said are "nonretail" workers.

Niccol disclosed the plan in a letter to employees, but didn't specify how many locations would be shuttered. He did note that after adding some new locations over the last year, the company's overall store count in North America will decline b

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