(July 29, 2008)—Starbucks earlier announced plans to shut 600 stores and now the chain says it will also cut almost a thousand non-store jobs as part of a bid to re-energize the brand and boost profits by cutting costs.
In a letter to all employees, CEO Howard Schultz said the gourmet coffee chain is reducing the number of positions and partners across the country.
The job cuts are in addition to the layoffs from the store closures.
Starbucks has said it will shut down 600 underperforming locations, the first 50 of which are being closed this month.
Starbucks has been working to transfer employees in stores that are being closed to other locations.
In the letter, Schultz said about 70 percent of those employees have been transferred.
The store-closing plan claimed just one casualty in Central Texas, the Starbucks at the intersection of West Waco Drive and North Valley Mills Drive in Waco.