Starbucks To Close 200 U.S. Locations, Lay Off 6,000 Store Staff
Just last week we mentioned a memo that Starbucks layoffs were in the wind, but with the caveat that the cuts were supposed to hit management hardest. Half right. The Wall Street Journal says the carnage is in response to Starbucks earning only $64 million in the first quarter. Apparently the $64 million answer is to close 200 U.S. stores, with another 100 international locations on the chopping block, and to lay off 6,000 store employees, with another 700 culled from Seattle HQ and other field offices. For reaction, we turn to a commenter at Starbucks Gossip: "Holy s**t! It's the damn Titanic!!" CEO Howard Schultz has cut his salary to $10,000 from $1.2 million--the WSJ says, "Once his health-care coverage costs are deducted from his salary, Mr. Schultz will earn less than $4 a month."
