Starbucks announces job cuts

July 29, 2008 10:41:05 AM PDT
More trouble is brewing at America's best known coffee chain.

Starbucks, planning to shut 600 stores, now also says it will cut almost 1,000 non-store jobs. It is part of a bid to re-energize the brand and boost profit by cutting costs.

In a letter to all employees, CEO Howard Schultz says the gourmet coffee chain is reducing the number of positions and partners across the country.

The jobs being cut 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.