Starbucks Begins Announced Layoffs

New York City Starbucks Corp. on Wednesday told about 1,370 employees that their jobs will be cut as the chain sheds costs by closing stores and laying off employees.

About 500 non-store employees in the United States and Canada, including 300 in the company's Seattle headquarters, and 870 assistant store managers learned their jobs were disappearing, the company said.

Starbucks said it is offering some of the affected employees other jobs. Those who leave Starbucks will be offered severance pay, benefits and help finding another job.

In an e-mail to all employees, Chet Kuchinad, an executive VP, said the layoffs are necessary given the economy and "critical to ensuring we have a sustainable and successful business going forward."

Employees not being laid off will meet with leaders over the next week to "map out" Starbucks' future, he said.

The layoffs come after the company in January announced the results of its fiscal first quarter and said it would cut up to 6,700 jobs to lower costs by closing more stores.