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Starbucks axing 5 percent of its corporate workforce

In an attempt to streamline its business model, Starbucks has already closed hundreds of stores, expanded its mobile offerings, and added more drive-thrus.
Patrons enter a Center City Starbucks, while a car blurs past, before more than 8,000 store nationwide will close this afternoon for anti-bias training, in Philadelphia, Pennsylvania
Patrons enter a Center City Starbucks in Philadelphia on May 29, 2018.Mark Makela / Reuters

Starbucks is axing 350 positions worldwide, part of a white-collar shakeup the Seattle-based coffee giant announced earlier this year as it seeks to streamline its business in the face of bold competition from premium coffee shops such as Blue Bottle and La Colombe.

Chief Executive Officer Kevin Johnson made the announcement via email on Tuesday morning, telling employees the cuts were the result of "work that has been eliminated, deprioritized or shifting way of working within the company.”

With sales growth in China outpacing that of the U.S., Starbucks is homing in on the Chinese market, opening one store every 15 hours, according to Belinda Wong, the company's China CEO. It already operates over 3,000 stores in China, including a 30,000-square-foot Reserve Roastery in Shanghai.

Within the U.S., Starbucks has spun off some of its consumables, closed hundreds of stores, opened up its mobile offerings to non-rewards members, and added more drive-thrus.

The slimline strategy appears to be paying off so far: Starbucks reported a record $6.3 billion revenue in the U.S. last quarter, with same-store sales up by 4 percent.