Starbucks to cut off 6,700 jobsJanuary 29th, 2009 - 3:46 pm ICT by Amrit Rashmisrisethi
Recently, Starbucks announced that it would close down 300 stores and axe 6,700 jobs in a further belt-tightening 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 per cent from a year ago.
Net profit in the quarter ended Dec 28 plunged 69 per cent to US$64.3 million , from US$208.1 million 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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