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| Starbucks slashes jobs and stores | Starbucks slashes jobs and stores |
| (about 3 hours later) | |
| Coffeeshop giant Starbucks has announced it will cut around 6,700 jobs and shut 300 stores as it reported a 69% plunge in quarterly profit. | Coffeeshop giant Starbucks has announced it will cut around 6,700 jobs and shut 300 stores as it reported a 69% plunge in quarterly profit. |
| Starbucks has struggled as hard-up consumers forego expensive lattes and frappucinos as the recession bites. | |
| It said it made a net profit of of $64.3m in the 13 weeks to December 28, down from $208.1m a year ago. | It said it made a net profit of of $64.3m in the 13 weeks to December 28, down from $208.1m a year ago. |
| Two-thirds of the store closures will be in the US and they come on top of the 661 closures announced in 2008. | Two-thirds of the store closures will be in the US and they come on top of the 661 closures announced in 2008. |
| Starbucks is the latest multinational company to announce massive layoffs. | Starbucks is the latest multinational company to announce massive layoffs. |
| Earlier on Wednesday, Boeing said it would cut 10,000 jobs. | Earlier on Wednesday, Boeing said it would cut 10,000 jobs. |
| 'Leaner' | 'Leaner' |
| In a letter to employees, chairman and chief executive Howard Schultz said that the company was working hard to "navigate the deteriorating global economy". | In a letter to employees, chairman and chief executive Howard Schultz said that the company was working hard to "navigate the deteriorating global economy". |
| "These decisions have been made to ensure the company is leaner and prepared to endure a worsening economic climate," he told staff. | "These decisions have been made to ensure the company is leaner and prepared to endure a worsening economic climate," he told staff. |
| "The financial crisis is affecting almost almost every company in the world." | "The financial crisis is affecting almost almost every company in the world." |
| Starbucks' revenue fell 6% to $2.6bn driven by 9% fall in sales in established coffee shops. | Starbucks' revenue fell 6% to $2.6bn driven by 9% fall in sales in established coffee shops. |
| But Starbucks' problems are not just down to the economic downturn. | But Starbucks' problems are not just down to the economic downturn. |
| Mr Schultz has admitted that the firm over expanded, devaluing its upmarket image. | Mr Schultz has admitted that the firm over expanded, devaluing its upmarket image. |
| Starbucks has further been hit by the likes of McDonald's and Dunkin' Donuts greatly improving the quality of their own coffee, which is generally also cheaper. | Starbucks has further been hit by the likes of McDonald's and Dunkin' Donuts greatly improving the quality of their own coffee, which is generally also cheaper. |