The world's largest chain of coffee shops, Starbucks Corp., is closing stores and shedding 6,700 jobs in the face of a lower first-quarter profit than anticipated. This move will put 6,000 workers in stores and 700 corporate employees out of work. The plan is for the company to close 200 stores in the United States and 100 overseas.
Starbucks plans to cut $100 million in costs this year. Stores that have been operating for at least 13 months saw a drop in sales of 10 percent in the first quarter. As of December 28, the company had 16,875 stores, including franchises.
Chief Executive Officer Howard Schultz asked the board of directors to cut his base pay back to less than $10,000, which is the minimum level of income that would preserve benefits for himself and his family. In 2008, his base pay was $1.2 million.