Starbucks Cuts Jobs, Realigns Management

StarbucksThe beleaguered Starbucks on Tuesday announced that it will cut 1,000 jobs. One of those is chief operating officer.

In an announcement made to employees, founder/CEO Howard Schultz said COO Martin Coles will resume the role of president, Starbucks Coffee International. Other management changes include:

  • Michelle Gass, senior vice president, Global Strategy-Office of the CEO, has assumed the leadership of the newly redefined marketing and category team as senior vice president, Marketing and Category, which includes Food and Beverage.
  • Dorothy Kim, executive vice president, Global Supply Chain Operations, takes on a new role as executive vice president, Global Strategy-Office of the CEO.
  • Peter Gibbons, senior vice president of Global Manufacturing Operations, who led manufacturing operations, has been promoted to executive vice president, Global Supply Chain Operations.
  • Vivek Varma, general manager of Communications and Public Relations for Microsoft Platforms Services Division, has been named senior vice president for Starbucks Public Affairs. He will assume his new position on Sept. 8.

Schultz said he made the decision to eliminate the chief operating officer job so that he could have "a direct line of sight" into the company's businesses.

Recently, the company has said it will close 600 U.S. stores. On Tuesday, it said it would close 61 of the 84 stores located in Australia.

Of the 1,000 job cuts, spokesperson Bridget Baker says, "there will be approximately 550 partners separated from the company. All are partners serving in non-store roles at the Starbucks Support Center or in the field (U.S. and internationally). About 180 are Seattle-based partners."

Starbucks shares were up 76 cents at $14.99 on the New York Stock Exchange.

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