NEW YORK: Starbucks will implement a five-day production schedule at its five United States coffee roasting and packaging facilities starting in January.
Bloomberg News reported the reduction, citing people familiar with the matter, as the coffee chain undergoes an overhaul under CEO Brian Niccol to cut costs and reinvest in stores.
The company has been struggling with weak demand in the United States for its pricey beverages.
Last week, Starbucks also capped raises for all North America salaried employees at a fixed 2% as part of its cost-cutting measures.
The company did not immediately respond to a Reuters request for comment.
The reduction will help pay for upgrades elsewhere after Starbucks found it no longer needs to operate the facilities seven days a week to meet current demand.
The plants are located in Georgia, South Carolina, Pennsylvania, Nevada and Washington state.
They produce coffee for Starbucks’ stores as well as packaged coffee the company sells at retailers and grocery stores. – Reuters