Starbucks to axe Australian stores amid more cost-cutting measures
(dpa) - Starbucks will close nearly three-quarters of its stores in Australia as part of a massive ongoing restructuring move to cut costs amid weaker sales, the coffee giant said Tuesday.
The Seattle, Washington-based firm also announced Tuesday that it would cut another 1,000 jobs at its US stores and eliminate its chief operating officer position.
The moves are part of overall cuts that chief executive Howard Schultz said earlier this month would see the closure of 600 under- performing US stores.
In Australia, Starbucks will close 61 stores throughout the country by Sunday. Its will keep open 23 stores in Brisbane, Melbourne, Sydney and surrounding areas, the company said in a statement.
While this decision represents business challenges unique to the Australian market, it in no way reflects the strong state of Starbucks business in countries outside of the United States," Schultz said. There are no other international markets that need to be addressed in this manner."
The 1,000 additional job cuts at US stores are on top of 12,000 cuts tied to the hundreds of store closings.
As part of a shift in top management positions, Martin Coles, who currently is the firm's chief operating officer, will take over Starbucks Coffee International and his current position will not be filed. He is replacing Jim Alling, who is leaving the company, in the international job. dpa aw