Starbucks will close stores and layoff employees

Yesterday news
昨天的新聞,Starbucks 關閉了 300 家分店,除了店內的 6000 名員工之外,另外還計畫裁撤 700 位員工。

Due to the worsening economic climate and more and more competitions, yesterday, Starbucks’s chief executive, Mr. Schultz, announced that Starbucks will close 300 stores, that means about 6000 workers in stores will be jobless. Besides, Starbucks will also layoff 700 employees who do not work in stores. The new store opening plan is also changed, from 470 new stores to 310 this year.

Because of the recession, Starbucks revenue and net income decreased or in a slowdown from last year. They started to do some cuts and tried to turnover from the economic doldrums. However, the recession seems to be beyond their expectation, so Starbucks had to do more cuts and had that announcement.

For the 1st quarter, Mr. Schultz said the net income fell to 9 cents per share ($64.3 million in total) from 28 cents per share ($208.1 million in total) in the period a year ago. The revenue fell 5.5%, from $2.77 billion to $2.6 billion.

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