Starbucks Corp. reportedly is planning to cut approximately 5 percent of its global corporate workforce.
According to a memo sent by CEO Kevin Johnson seen by CNBC, Johnson said the layoffs would impact 350 employees in marketing, creative, product, technology and store development, CNBC reported.
The Wall Street Journal said the layoffs are geared to transform the coffee giant into a more nimble company.
The plan comes as the Seattle-based chain struggles to attract new and repeat customers to its U.S. coffee shops amid a highly competitive coffee market, the Journal said.
The move comes despite the fact that a jump in U.S. sales helped Starbucks end its fiscal year on a high note, the Associated Press reported.
Earlier this month, Starbucks said its same-store sales — a critical measure for retailers — rose 4 percent in the U.S. in its fiscal fourth quarter. That helped its global same-store sales rise 3 percent, ahead of analysts' expectations, according to FactSet.
Same-store sales rose 1 percent in China, another critical market for the coffee chain and an improvement from the prior quarter.
"These results provide encouraging evidence that our plan is working," Johnson said in a conference call with investors earlier this month.
Starbucks had been struggling with sluggish sales in its biggest markets. In June, the company announced it would close 150 underperforming U.S. stores next year, up from the usual rate of 50 closings per year.
In Asia, Starbucks is rapidly opening stores to improve sales. Starbucks plans to add 2,100 new stores in 2019; more than half of those will be in Asia. Starbucks also partnered with Alibaba in August to improve its digital platform and provide delivery. All Starbucks stores in Shanghai, Beijing and 11 other cities now offer delivery, the company said.
Starbucks said it expects its global same-store sales to be at the low end of a 3 to 5 percent increase in its 2019 fiscal year. It expects global revenue to rise 5 to 7 percent, with adjusted earnings of $2.61 to $2.66 per share.
The company's stock price (SBUX) was lower in late Tuesday trading. Shares were down 14 cents at $67.77. The stock has hit a high of $68.98 in the last year and a low of $47.37.
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