ICYMI - Starbucks to cut U.S. coffee plant output by two days every week - demand softens

ICYMI - Starbucks to cut U.S. coffee plant output by two days every week - demand softens

• Starbucks trims U.S. production as demand weakens, underscoring margin pressures for consumer sector.

Starbucks will scale back production at its U.S. coffee plants to a five-day schedule from January as part of CEO Brian Niccol’s cost-cutting drive. The move comes amid sluggish U.S. demand and follows capped raises for salaried employees.

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Starbucks plans to reduce output at its five U.S. coffee roasting and packaging facilities, moving to a five-day weekly schedule, from 7, beginning in January, Bloomberg reported. The company is pursuing broad cost-cutting and reinvestment under new CEO Brian Niccol as it grapples with weak U.S. demand for its higher-priced drinks.

The move follows other belt-tightening steps, including capping annual raises for salaried employees in North America at 2%. Starbucks has said the goal is to redirect savings toward improving stores and customer experience while managing softer sales momentum.