More Starbucks Layoffs

Starbucks is expecting to layoff another 1,000 people, including a third of the employees at the company’s headquarters. Read about it below.

Starbucks

Not too long ago I heard Starbucks CEO, Howard Schultz, on television talking about the Seattle based company having to layoff 2,000 employees over the past year. During his TV interview, he was giving a very positive outlook for the company. I remember him stating that he would think that a company like Starbucks would be recession proof. I remember that because at the time I thought, ‘WHAT??!!??!!’

I love Starbucks coffee, but I wondered how on earth anyone could think a coffee shop that charges $5 or more for a cup of coffee, regardless of how fancy it is and what its named, could think it was recession proof. When times are hard, the $5 cups of coffee will be on the short list of luxury items that’ll be dropped. Although, I appreciate the positive attitude of the CEO, I did think he must be delusional.

Now there are reports that Starbucks is laying off another 1,000 employees.

Another big round of layoffs is expected at Starbucks, possibly 1,000 people — a third of its headquarters employees — and some district managers and field employees, according to an e-mail sent to a stock brokerage’s customers Friday.

“The cuts might be next week or in February,” wrote Diane Daggatt, a managing director at McAdams Wright Ragen in Seattle.

Starbucks declined to comment on possible layoffs. The Seattle coffee company releases its first-quarter results on Wednesday.

No barista jobs are in jeopardy, Daggatt wrote.

It looks like we are going to have to make the huge sacrifice of going back to good old fashioned brewed coffee with cream. At a buck a cup.