Starbuck's in Australia

A new update on Starbuck's in this Wall Street Journal article.

Starbucks Makes 1,000 New Job Cuts
By JANET ADAMY
July 30, 2008; Page B8
Wall Street Journal
http://online.wsj.com/article/SB121731645911592823.html?mod=djkeyword

Starbucks Corp. eliminated almost 1,000 more jobs and said it will close 61 stores in Australia, in the latest signs of the coffee chain's struggles.


Starbucks Closings: See a map with full listings of scheduled U.S. store closings.
The company also shuffled several top positions. It replaced Jim Alling, president of the company's international business, with Martin Coles, who has been chief operating officer, and said Mr. Alling is leaving Starbucks. Michelle Gass, who had been working with Chief Executive Howard Schultz on a turnaround agenda, is moving to another position inside the company.

The job cuts are taking place at Starbucks's Seattle headquarters and other offices and don't include store jobs, spokeswoman Deb Trevino said. They represent 15% of the company's nonstore work force; about half will result in people losing their jobs, while the other half are open jobs that won't be filled.

The moves helped restore Wall Street's confidence in the battered stock before the company's scheduled earnings report Wednesday. Shares of Starbucks were up 76 cents, or 5.3%, at $14.99 in 4 p.m. Nasdaq Stock Market trading.

Analysts expect the company's third-quarter sales and earnings will be mediocre as it struggles to lure customers in a weak economy and retrenches following its rapid expansion.

MORE ON STARBUCKS


• Coffee Retailers Endure Economic Storm
07/28/08
• Starbucks Keeps Breakfast Sandwiches
07/26/08
• Starbucks Gets Pleas Not to Close Stores
07/21/08
• Starbucks Lists Stores to Be Closed
07/18/08
• Anxiety for Starbucks Loyalists
07/09/08
• Starbucks to Shut More Stores, Cut Jobs
07/02/08The pullback in Australia, which will lose more than 70% of its Starbucks stores, raises questions about the potential of Starbucks's overseas operations. Mr. Schultz has said the company will shift its expansion to overseas markets as it curbs U.S. growth and shuts 600 outlets here. The company said it will now focus its Australian presence in the areas of Brisbane, Melbourne and Sydney.

In other executive moves, the company said Dorothy Kim, previously executive vice president of global supply-chain operations, will take over for Ms. Gass as executive vice president of global strategy, office of the chief executive. Ms. Gass will become senior vice president of marketing and category, which includes Starbucks's food and drink departments. Peter Gibbons, senior vice president of global manufacturing operations, will take Ms. Kim's former position.

Starbucks also named Vivek Varma, general manager of communications and public relations for Microsoft Corp.'s Platforms & Services division, as senior vice president for public affairs. Starbucks eliminated the chief operating officer position as part of the changes.

Write to Janet Adamy at janet.adamy@wsj.com