ICYMI – Starbucks to chop U.S. espresso plant output by two days each week – demand softens

Starbucks will cut back manufacturing at its U.S. espresso vegetation to a five-day schedule from January as a part of CEO Brian Niccol’s cost-cutting drive. The transfer comes amid sluggish U.S. demand and follows capped raises for salaried workers.

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Starbucks plans to scale back output at its 5 U.S. espresso roasting and packaging amenities, shifting to a five-day weekly schedule, from 7, starting in January, Bloomberg reported. The corporate is pursuing broad cost-cutting and reinvestment below new CEO Brian Niccol because it grapples with weak U.S. demand for its higher-priced drinks.

The transfer follows different belt-tightening steps, together with capping annual raises for salaried workers in North America at 2%. Starbucks has mentioned the objective is to redirect financial savings towards bettering shops and buyer expertise whereas managing softer gross sales momentum.

This text was written by Aaron Cutchburt at investinglive.com.