Starbucks to cut 1,000 jobs; Rejigs top mgmt
Coffee retail giant Starbucks Corp has said it will reduce its workforce by 1,000 employees and has restructured its executive leadership team.
By Agencies |
NEW YORK: Coffee retail giant Starbucks Corp has said it will reduce its workforce by 1,000 employees and has restructured its executive leadership team.
In an e-mail to the employees on Tuesday, Starbucks President, CEO and Chairman Howard Schultz outlined the actions which the company would take given the tough operating environment.
"...a reduction in our workforce of both the number of positions and partners across the company by almost 1,000 and the realignment of the executive leadership team," Schultz said while describing the various initiatives taken by the company this month.
Martin Coles, the Chief Operating Officer, would assume the role of President of Starbucks Coffee International.
"We are excited about Martins return to our International business at a time of tremendous opportunity. Concurrent with this, we have eliminated the COO position," Schultz said.
Other business strategies implemented by the company this month include closure of about 600 under performing company -operated stores in the US and the closure of 61 stores in the Australia market, with 23 remaining open.
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" Although I, along with the leadership team, made the hard choices to close stores and reduce the number of positions, which will result in loss of jobs, ultimately, I feel that they rest with me," Schultz said in the e-mail. I fully understand the seriousness of these actions and the concerns you may have, but please be assured that we will treat all departing and remaining partners with respect and dignity," he added.
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