More job cuts for Starbucks

Wednesday, July 30, 2008 at 12:59am

Starbucks Corp., the world's largest chain of coffee shops, will cut another 1,000 jobs and eliminate the chief operating officer position as the company seeks to reverse slumping sales.

Operating chief Martin Coles will take over as president of Starbucks Coffee International, the Seattle-based company said Tuesday in a statement. Jim Alling, the previous international chief, is leaving the company.

Starbucks founder Howard Schultz, 55, resumed the position of chief executive officer in January to revitalize the chain's cafes after U.S. customer visits declined. Earlier this month, he announced plans to close 600 stores in the U.S. and eliminate as many as 12,000 positions, or 7 percent of the workforce.

“They're just streamlining a lot of their overhead business units at this point,” said Sharon Zackfia, an analyst at William Blair & Co. in Chicago. She recommends investors buy the shares.

About 550 of the latest jobs being eliminated are non-store positions, spokeswoman Bridget Baker said. The company employed about 172,000 as of last September.

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By: RTungsten on 12/31/69 at 6:00

Looks like I need to start using my Starbucks gift cards I've had in my wallet for 3 years.