CHICAGO - STARBUCKS said it is cutting 1,000 support jobs and eliminating the post of chief operating officer in a move to give founder and CEO Howard Schultz 'a direct line of sight' into the company's business.

The shake-up also includes the departure of the one-time head of Starbucks ailing United States business.

The management changes on Tuesday are the latest in a series of moves at the coffee chain operator, which has seen profits hit and traffic at US stores lag as cash-strapped consumers cut back on everyday luxuries like coffee drinks that sell for US$3 to US$5 (S$4 to S$7).

Mr Owens did not comment on specific managers.

Back to the international grind
The company said Mr Martin Coles will move from the role of chief operating officer back to his prior position as president of Starbucks Coffee International.

He will replace Mr Jim Alling, who is leaving the company, Mr Schultz said in an e-mail to Starbucks employees that was released by the company.

Mr Alling had been in charge of the company's US business under former Chief Executive Jim Donald and moved to the international job when Mr Coles was named chief operating officer last year.

Mr Donald was replaced as CEO by Mr Schultz, the founder and chairman of Starbucks, in January.

Mr Schultz said he made the decision to eliminate the chief operating officer job so that he could have 'a direct line of sight' into the company's businesses.

In recent weeks, Starbucks has announced the closing of 600 US stores and on Tuesday it said it would close 61 of the 84 stores located in Australia.

The 1,000 job cuts announced on Tuesday represent 15 per cent of the company's non-store positions, a spokesman said, adding that about 450 of the jobs were already vacant. -- REUTERS

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