In an attempt to gain footing during difficult times, Starbucks is tightening its belt. CNNmoney.com reports corporate level job cuts throughout Starbucks Corp., specifically mentioning last Thursday the cutting of 220 corporate-level jobs, another step in its restructuring plan to improve U.S. operations.
About 75 of those jobs are at its Seattle headquarters; the rest are in other Starbucks offices across the United States. The jobs involve finance, marketing and communications functions, according to spokesman Brandon Borrman. No retail- store level workers are being let go.
In addition, Starbucks (SBUX) won't fill 380 job positions it had budgeted. On that basis, the coffee-shop chain said that it's trimming its workforce by 600 jobs. It currently employs 170,000.
"We realize that we are operating in an intensely challenging environment, one in which our customers and partners (employees) have extremely high expectations of Starbucks," Chief Executive Howard Schultz told employees in a memo. "We have to step up to the challenge of being strategic as well as nimble as our business evolves."
Schultz retook the helm in early January to rejuvenate the Starbucks U.S. business, which has showed signs of fatigue after years of rapid growth and softer consumer spending of late.
The company is curbing U.S. store-growth plans, closing 100 underperforming stores and testing $1 coffee at some of its Seattle stores. It plans to discontinue financial forecasts and stop serving warm-egg breakfast sandwiches because it interferes with the aroma of coffee.
The company, Schultz said Thursday, also will increase its U.S. field operations to four offices from two, effective Feb. 25. It is part of his broader plan to better connect with consumers.
Starbucks shares, down 45% the past year, closed at $17.83, down 43 cents.
(image from wwff.wordpress.com)
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