Starbucks Cuts 600 Jobs, Restructures Operations

[marmar]

from Bloomberg:




Starbucks Cuts 600 Jobs, Restructures Operations (Update3)

By Oliver Staley

Feb. 21 (Bloomberg) -- Starbucks Corp., the world's largest chain of coffee shops, said it will eliminate 600 jobs and add regional divisions in the U.S. in an effort to end a decline in customer visits.

About 220 workers were fired, with other cuts coming from the elimination of vacant positions, Seattle-based Starbucks said today in a statement. Most of the terminated employees, who account for less than 1 percent of Starbucks' workforce, were support staff who don't serve customers.

Chairman Howard Schultz, who resumed the position of chief executive officer on Jan. 7, said he wants to revitalize the coffee chain's more than 15,000 cafes. Schultz said last month he would slow the pace of store growth and close 100 ``underperforming'' locations.

``We have to step up to the challenge of being strategic as well as nimble as our business evolves,'' Shultz said in a letter to Starbucks' employees. ``Unfortunately, we have not been organized in a manner that allowed us to have a laser focus on the customer.''

Starbucks will double the number of U.S. divisions to four in the hopes of improving employee training and customer service. Visits to U.S. locations have declined the past two quarters.

Schultz, who has also dropped breakfast sandwiches and is considering adding different coffee blends and prices, said he plans to announce five initiatives for the company March 19.

Starbucks, which employs more than 170,000, fell 43 cents, or 2.4 percent, to $17.83 at 4 p.m. New York time in Nasdaq Stock Market composite trading. The shares have fallen 3 percent since Schultz replaced Jim Donald as CEO.

http://www.bloomberg.com/apps/news?pid=newsarchive&sid=aSLG_3davHpU

[leftofthedial]

1. is the coffee bubble bursting?

when you don't have a job and can't make your mortgage payment,

how many $5 cups of coffee can you buy?

[jedr]

2. that's because they have been roundin' up them;

Volvo drivin', latte' drinkin' liberals ! Can't have them hangin' around!

[ChairmanAgnostic]

3. kreepy kreme donuts had a similar problem,

their moronic bosses at leases or owned in part or in whole SEVEN corporate jets at one time. Duh.

Since when does a donut shop need even one corporate jet?

starbust has been teetering for a while, with artificially high prices, and falling quality. now that mac's and dunkins are providing premium coffees, their corporate pain is even greater.

my solution is easy. I drink tea.