Starbucks To Cut 1,000 Non-Store Jobs

July 29, 2008 5:38 p.m. EST

New York, NY (AHN) - Starbucks Corp. announced Tuesday it will cut 1,000 non-store jobs by July 29 in an continued effort to reduce costs and boost profits.

The move comes only weeks after the company said it would close 600 stores as the market had become oversaturated.

The coffee retailer has been active transferring employees of closing stores to other nearby locations. Starbucks said roughly 70 percent of those employees have been transferred.

Starbucks also announced a management shake-up. Martin Coles will shed his title of chief operating officer and become president of the company's international business. CEO Howard Schulz will now also serve as the COO, giving him better visibility of daily operations.

"Although it is not easy, hopefully, we realize that part of transforming Starbucks is our ability to look forward, while pursuing innovation," said Schulz, according to the Associated Press. "We strongly believe that our decisions to close underperforming stores and reduce our partner work force will help support Starbucks' continued growth."

Shares of Starbucks finished more than 5 percent higher on Tuesday.