Starbucks has Big Job Cuts Ahead
Update: It was announced today that they are going to cut 6700 jobs and close an additional 300 stores; ouch. Apparently the bulk of those cuts will come from the store closings. The store closings further point to the weakening economy, the potentially bad real estate choices that they made, and the fact that caffeine addictions are portable - you can get your fix at home, or at a cheaper place down the road.
Latte traffic must really be down, as the Seattle Times is reporting that Starbucks will be making job cuts in the coming weeks, potentially up to 1,000 people. The targets are said to be the field employees, district managers and staff at its headquarters, not baristas (this time). Recall that Starbucks laid off about 2,000 employees last year as they also shut underperforming stores.
I was in a handful of Starbucks yesterday mid-town Manhattan and there seemed to be a steady flow of people, but there were no lines out the door, as only a couple of people were there at any one time. So, while the stores were packed, it might have been the vagrants and the fact that it was bone chillingly cold so folks were seeking some warmth wherever they could get it.
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Posted by Scott Martin at January 27, 2009 6:28 AM