Starbucks will scale back production at its U.S. coffee plants to a five-day schedule from January as part of CEO Brian Niccol’s cost-cutting drive. The move comes amid sluggish U.S. demand and follows capped raises for salaried employees.
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Starbucks plans to reduce output at its five U.S. coffee roasting and packaging facilities, moving to a five-day weekly schedule, from 7, beginning in January, Bloomberg reported. The company is pursuing broad cost-cutting and reinvestment under new CEO Brian Niccol as it grapples with weak U.S. demand for its higher-priced drinks.
The move follows other belt-tightening steps, including capping annual raises for salaried employees in North America at 2%. Starbucks has said the goal is to redirect savings toward improving stores and customer experience while managing softer sales momentum.
This article was written by Eamonn Sheridan at investinglive.com.