Starbucks axes 600 us stores and 12,000 jobs

However, the US move will have no impact on Starbucks here, Sumonpin Jotikabukkana, marketing and communications director for Starbucks Coffee (Thailand), said yesterday.

"We have been busy discussing the matter today. We have got the impression that the Asia-Pacific and Thailand stores will not be affected by the closure of the US stores due to the economic weakness," she said.

Starbucks' operation of all branches in Asia-Pacific remains unchanged. Its business plan in Thailand to open about two branches every month remains the same. The company also does not have to adjust its strategy here, she added.

About 70 per cent of the stores slated for closure in the US had opened after the start of 2006, the company said in a statement on Tuesday.

To put it another way, Starbucks is closing 19 per cent of all US company-operated stores that opened in the last two years, chief financial officer Pete Bocian said during a conference call.

About 12,000 workers, or 7 per cent of Starbucks' global workforce, will be affected by the closures, which are expected to take place between late this month and the middle of next year, spokeswoman Valerie O'Neil said.

She said most employees would be moved to nearby stores, but she did not know exactly how many jobs would be lost. Starbucks estimates US$8 million (Bt270 million) in severance costs.