SEATTLE In a continuation of this year’s “transformation agenda,” Starbucks Corp. on Tuesday announced plans to eliminate another 1,000 positions, as well as a realignment of the executive team.
Among the top-level changes is the departure of Jim Alling, former president of Starbucks Coffee International and an 11-year veteran of the company. Alling will be replaced by Martin Coles, formerly chief operating officer, who is returning as chief of the international division. The COO position will be eliminated.
The elimination of 1,000 jobs, which will include both filled and unfilled positions, follows Starbucks' announcement earlier this month that it would close 616 company stores across the United States, a move that is expected to impact about 12,000 employees. Chairman and chief executive Howard Schultz noted, however, that about 70 percent of employees from the first 50 shuttered units transferred to other stores.
In February, the company announced plans to eliminate about 600 jobs across its U.S. operations. At that time, organizational changes included the restructuring of field operations and consolidation of support functions.
Also on Tuesday, Starbucks announced plans to close 61 of its 84 stores in Australia. The remaining 23 stores are primarily in the core cities of Brisbane, Melbourne and Sydney.
The decision to close locations in Australia “in no way reflects the state of Starbucks’ business in countries outside of the United States, which is quite strong,” said Schultz in a statement. “Our challenges in Australia are unique, and there are no other international markets that need to be addressed in this manner.”
Schultz said he would discuss the results of continuing efforts to reinvigorate the coffeehouse giant in a third quarter earnings report scheduled for Wednesday.
“We have experienced a lot of change since we embarked on our journey to transform the company,” he said. “And I know that the difficult and emotional nature of our decisions has weighed heavily on every partner in the company, which is the most distressing part of our current business state.”
In other executive team changes, Michelle Gass, former senior vice president for global strategy, has been named senior vice president for marketing and category, which includes food and beverage.
Dorothy Kim, executive vice president for global supply chain operations, was named executive vice president for global strategy. Kim’s former position will be filled by Peter Gibbons, former senior vice president for global manufacturing operations.
Vivek Varma, former general manager of communications and public relations for the Microsoft platforms services division, has been named senior vice president of public affairs.