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Howard Schultz CEO Starbucks Corp a great juggler, cutting 1,000 support jobs and top management

By Amarendra Bhushan for CEOWORLD Magazine Updated:July 30, 2008

Starbucks Corp. will cut 1,000 positions and realign its executive leadership, including replacing James Alling, president of Starbucks Coffee International and eliminating the post of chief operating officer.
“There has been quite a shake-up over the last year and it looks like that is just continuing, For Starbucks to turn around its business, they probably do need to replace some of the people that made the decisions that kind of led them down the path to where they are today.” Morningstar restaurant analyst John Owens said.

David Palmer, an analyst at UBS Securities, said in a research report Tuesday that Starbucks is the biggest “under-earner” among the restaurants he covers.

- Starbucks shares rose more than 5 percent on Nasdaq.
- Martin Coles will move from the role of chief operating officer back to his prior position as president of Starbucks Coffee International.
- Martin Coles will replace Jim Alling.
- Jim Donald was replaced as CEO by Schultz, the founder and chairman of Starbucks, in January.
- Starbucks has announced the closing of 600 U.S. stores.
- Also it would close 61 of the 84 stores located in Australia.
- The latest cuts include 180 positions in Seattle.
- Starbucks now has 172,000 employees worldwide.

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