STARBUCKS SET TO LAY OFF 300 WORKERS

// January 29th, 2009 // Hott Topics

bigger they are, the harder they fall

“The company plans to close 200 locations in the U.S. and 100 overseas, in addition to the 600 Starbucks said it would close last year”

By John Charles Reedburg

I guess in a recession everyone suffers, including the big guys.

STARBUCKS CORP., the world’s largest chain of coffee shops, said it will cut 6,700 jobs and close 300 more stores after reporting first-quarter profit that fell more than analysts estimated.

The company plans to close 200 locations in the U.S. and 100 overseas, in addition to the 600 Starbucks said it would close last year. The workforce reduction will eliminate 6,000 café positions and 700 corporate jobs, the Seattle-based chain said today in a statement.

Chief Executive Officer Howard Schultz warned in December that Starbucks’ profit would be less than analysts’ estimates at the time as sales in established stores worsened in November. Customers pinched by job losses and falling home prices are cutting back on premium coffee. The firings and closings announced today further accelerate Schultz’s plan to trim costs.