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As part of its ongoing transformation, Starbucks (Nasdaq: SBUX) CEO communicated organizational changes in an email to Starbucks employees. Starbucks Coffee Internationl President Jim Alling has left the company. Starbucks names Martin Coles as the new President of Starbucks Coffee International, thus eliminating the COO position.
Starbucks will close 61 stores in Australia, but will keep 23 stores open. Howard Schultz said the problems in Australia are unique to that country and do reflect the rest of the international market.
Below is an excerpt from the email. To see the email in its entirety click here
July 29, 2008
To: Starbucks Partners
From: Howard Schultz
Re: A message from Howard---Building a stronger company for the future
Dear Partners,
I want to acknowledge from the outset some of the difficulty that many of you may be experiencing given the tough operating environment we are facing. But let me assure you that there has been a relentless focus on making the decisions necessary to put us all in a position to win.
Our decision to close underperforming stores in the Australia market was just as difficult, and it in no way reflects the state of Starbucks business in countries outside of the United States, which is quite strong. Our challenges in Australia are unique, and there are no other international markets that need to be addressed in this manner.
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