Starbucks to slash 6,700 jobs, close 300 stores
Starbucks said on Wednesday it was slashing 6,700 jobs and closing 300 stores in a further belt-tightenting by the coffee house giant to cope with a rapidly weakening global economy.
By Agencies |
NEW YORK: Starbucks said on Wednesday it was slashing 6,700 jobs and closing 300 stores in a further belt-tightenting by the coffee house giant to cope with a rapidly weakening global economy.
The coffee-shop chain, which already announced a massive restructuring in July as wary consumers cut back on lattes and other specialty coffee drinks, reported revenue in the first quarter of its business year fell 6.0 percent from a year ago.
Net profit in the quarter ended December 28 plunged 69 percent to 64.3 mn dollars, from 208.1 mn in same period in 2007.
"In the midst of the weakening global consumer environment, Starbucks is following a well-developed plan to strengthen our business through more efficient operations and by preserving the fundamental strengths and values of our brand," Howard Schultz, Starbucks chairman, president and chief executive, said in a letter posted on the company's website.
By the end of the 2009 business year in September, the company intends to close about 300 stores worldwide, including 200 in the United States.
The latest actions came on top of the closure of 600 US stores and the elimination of about 11,000 jobs, announced in July 2008, the Seattle, Washington-based retailer said.
The coffee-shop chain, which already announced a massive restructuring in July as wary consumers cut back on lattes and other specialty coffee drinks, reported revenue in the first quarter of its business year fell 6.0 percent from a year ago.
Net profit in the quarter ended December 28 plunged 69 percent to 64.3 mn dollars, from 208.1 mn in same period in 2007.
"In the midst of the weakening global consumer environment, Starbucks is following a well-developed plan to strengthen our business through more efficient operations and by preserving the fundamental strengths and values of our brand," Howard Schultz, Starbucks chairman, president and chief executive, said in a letter posted on the company's website.
By the end of the 2009 business year in September, the company intends to close about 300 stores worldwide, including 200 in the United States.
The latest actions came on top of the closure of 600 US stores and the elimination of about 11,000 jobs, announced in July 2008, the Seattle, Washington-based retailer said.
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