What are you hearing about Wednesday's layoffs?

Were you pink slipped today? Tell your story here. || READ THE UPDATE: Starbucks tells 1,370 workers that their jobs are being eliminated. || Read the memo from Starbucks human resources. || Jump to the sixth page of comments.

Comments

[sorry]

ASM's and support

[SinkingShip?]

Hi, I was not laid off today I am a shift supervisor from New Jersey. I feel terrible for all of those laid off today(6 of my friends) and would like to say I am very upset over all of this. I heard that "underperforming" shift supervisors are the next to be laid off. What is going on?

[Starbucks Insider]

All ASMs were layed off today.

[Pat Nerr]

Good luck partners...

[Terpripken]

As I posted in the other pink slip thread:

I'm an ASM (formerly). I just had a meeting with my DM and I can confirm that they are eliminating the ASM role. I was offered a demotion to shift at my same store or a severance package. I have until Friday at 5 PM to make a decision. I'm afraid however, that alot of ASM's won't be offered a demotion. At least that was the impression I got. I suppose it depends on job performance, the needs of the district...etc. Good times.

The severance offered was for 3 weeks and was not negotiable. I haven't read through all the materials yet, but I will post more as I do. However, I am to continue working until the 25th. So basically the company gave me 2 weeks notice.

[Dave]

I have a friend in the store design group and it looks like all of them have "15-minute" meetings scheduled today.

[SinkingShip?]

I heard that some stores are keeping an ASM...both of mine got let go but we are getting another one for sure. I'm confused.

[Herman Melville]

Laid off, not offered an opportunity to step down, had threes on my last 3 reviews, my store is comping last years sales and customer counts, but the asm from the underperforming store with sales losses got to keep her job, I'm completely confused.

[BAYAREABUX]

If all ASMs are being laid off, wouldn't that far exceed the # of people reported by the company on the conference call? Wasn't it limited to 1,000 with 300 from Seattle and 700 from store closures? Did we just get lied to two weeks ago?

[Mary]

Some of the ASMS will survive. Best wishes and good luck to those that lost their jobs.

[spilledmilk]

Not all asm's are being laid off. About 50%. They took an average of our reviews and laid off the bottom performers. It is not a store specific lay-off, nor due to current performance. If we work threw the 25th, then we recive 3wks severance.

[spilled milk]

Not all the Asms. They averaged all of our past reviews, and laid off the bottom performers. It is not store specific,and not current perormance based. About 50% of the Asm's will go. If we work through the 25th then we recive 3wks severance. We are still in good standing with company, and can reapply if we wish. I for one, will not. Our DMs had nothing to do with the decition, they were only informed, and told to do the dirty work.

[AliCat]

If anybody in Chicago gets laid off, please let us know!

[SD partner]

Hello,
I got laid off yesterday. I am a little sad very relieved! I don't have to worry about unrealistic expectations anymore. I am sure better things are on the way. Good luck to everyone else! Don't stress, you will be okay no matter what!! Peace!

[lattewizard]

AliCat - I have my meeting with my DM at 1. I'm dreading this for sure.

[CouvBux]

i just got my phone call today (from another DM, mine is on an extended "vacation") and i'm safe in my position as an ASM. i thought for sure i would be asked to step down, as that is what my DM alluded to when we met about a month ago and because i am one of most recent promotes in SW WA. however, i will have to transfer to a yet-to-be-determined store (should be finding out next week sometime).

i really feel for those who weren't so lucky. my heart and prayers go out to you all. <3

[handsomedan]

Ops got hit today - the only person left in the group was the only clueless one of the group when i was there. ridiculous.

[energybolt]

I've had the opportunity to work for & with partners of the highest caliber - I truly wish the best for all that are in this round of lay-offs! At this point all of us are replaceable & the fact that some of us have commited our best to this company - makes it even harder to understand some of the recent changes.

[BOSTON STARBUCKS REBEL]

Let the bodies hit the floor
Let the bodies hit the floor
Let the bodies hit the floor
Let the bodies hit the floor Beaten why for
Can't take much more
One - Nothing wrong with me
Two - Nothing wrong with me
Three - Nothing wrong with me
Four - Nothing wrong with me
One - Something's got to give
Two - Something's got to give
Three - Something's got to give
Now
Let the bodies hit the floor
Push me again
This is the end
Skin against skin blood and bone
You're all by yourself but you're not alone
You wanted in now you're here
Driven by hate consumed by fear
Let the bodies hit the floor

[AliCat]

Lattewizard... what are your DM's initials if you're in Chicago?

[781Barista]

I'm a SS with slightly above average score, just under three years with the company, and working in a store with brisk sales ... I'm still worried about going in at 4. My DM was there yesterday, just to say "hi" and such, that is not making me feel good about the future of the store.

[Just Another Shift]

From Reuters:

LOS ANGELES, Feb 11 (Reuters) - Starbucks Corp (SBUX.O) on Wednesday said it issued more than 1,000 pink slips related to its newest round of job cuts.

The coffee chain in January said it would close 300 additional outlets and slash as many as 7,000 jobs as it cuts costs to keep up with a deteriorating global economy and soft consumer demand.

About 870 assistant store managers were notified that their positions were eliminated, Starbucks said in a statement.

The company also said about 500 non-store employees in the United States in Canada have been notified that their jobs have been cut. Around 300 of those positions are located in the Seattle-based Starbucks Support Center.

Starbucks said similar actions are taking place in international markets where the company owns its stores.

"Some of these partners are being offered opportunity for redeployment to alternative positions and others will be separated from the company," Starbucks said.

In 2008, Starbucks closed 61 stores in Australia and said it would close 600 underperforming stores in the United States. (Reporting by Lisa Baertlein; editing by Gunna Dickson)

[Mike]

Tho i am not a Partner my company is a vendor of delightful breakfast offerings and even my company is showing the love on Valentines day so to all the layed off Sbux personal now and the future i give warm wishes to you and yours

~Mike

[ilovecaramelsauce]

Cuts at Roasting Plants. Details anyone?

[Me]

Here in Canada, due to the implementation of optimal scheduling, Starbucks will let go A LOT of Baristas. Unfortunately this will go undetected and the amount of (espacially part time) jobs lost will stay unreported.
I don't mind the company getting rid of all these 4 hour a week partners that are only on payroll for their markout and the discount, but I already know a whole bunch of really good Baristas that will be out of their job by march, due to this optimal scheduling.

Unfortunately some of them are really good customers as well. I for one will have to stop spending about 1000 Dollars a year at Starbucks.

Please do everyone a favour and scrap that whole guiding principles thing about respect and dignity and please stop calling your employees partners. A real partner would be treated differently than what you are doing right now.

I am very disappointed in Starbucks, the former role model of a socially responsible company. I guess the real character only shows in the crisis.

For everyone who is still left and doesn't fear for his job right now: Onward!

[x2, xCR, CM]

My sister was an ASM at a store averaging $20-21k/week and her position was eliminated. She was offered a choice of severance (3 weeks) or an ASM position at a store 30 minutes away.

The DM told her that corporate chose ASM eliminations based on forward looking sales forecasts on a store-by-store basis. From that we can glean that corporate believes sales are going to continue to decline for at least the next couple quarters. That would help to explain the smaller severance. I was laid off in July 2007 was offered 2 weeks + one week for every year of completed service. This tells me they are in a cash-hoarding mode. By getting all of these severance expenses out of the way by the middle of the quarter, they can try to meet analyst expectations for FY09Q2.

Just a guess, but they are also probably doing this because eliminating additional layers of management cuts costs and makes an additional coverage hours available to shift supervisors, who are desperate for hours.

To all who had their jobs eliminated today, my heart goes out to you. The store that I frequent has continued to suffer sales declines, so I hope the bottom is reached quickly for the sake of everyone who still has a job.

[S]

You can expect to still see some ASMs in higher volume stores. I imagine the sales avg needed to retain an ASM will vary by region/division. Have to admit though, this is the cut I expected recently when, instead, we heard of more store closures.

[Terpripken]

I'm not buying the underperforming ASM's were let go bit. My reviews are about as good as you can get. I'm sure it has to do more with sales forecast.

[lula]

I am going to college and thank God I do not need starbucks anymore...Howie...The dream is over.
Karma is a bitch,babe...........

[MeToo]

From BloggingStocks.com:

S&P downgrades Starbucks; SBUX may sink at open

Posted Feb 10th 2009 4:38AM by Douglas McIntyre
Filed under: Analyst upgrades and downgrades, Starbucks (SBUX)

The news at Starbucks (NASDAQ: SBUX) was good yesterday, until the market closed. Then S&P hit Starbucks with a downgrade. And, that won't help the shares if they are going to stage any sustained rally.

According to the AP, "Standard&Poor's Ratings Services said Monday it revised its outlook on Seattle-based Starbucks Corp. to negative from stable following weaker operating performance in the company's fiscal first-quarter which ended in December.." S&P also cut its short-term rating on SBUX debt.

Since S&P is carefully followed among institutional investors, their rating is likely to offset any excitement about the coffee company's new value meal which combines coffee and a breakfast item for $3.95. One of the concerns about the new offering is whether Starbucks can make any money on it. With high real estate costs, high commodities costs, and a relatively expensive employee base, the $3.95 play may be a "loss leader". If so, and Starbucks customers do not step up to its more expensive products, the company may just be increasing its cost of goods for the next quarter.

S&P won't buy the $3.95 menu. And, that could cause a dip and the open of trading and cap the stock for a few weeks.

[Melody]

This is a very saddening thread. I hope every one finds new employment soon.

[MeToo]

From the Dow Jones Newswire:

"The chain also plans to combine its Canada and Latin American operations into a single region and will realign its U.S. field operations, according to an internal memo from Executive Vice President Chet Kuchinad. "

Anyone have details about this realigning? Are DMs and RDs being let go?

I got into a conversation yesterday with a Starbucks service technician who told me that not only are the regional field offices being closed, but regional headquarters as well. I learned that the Indianapolis office is being slated for closure.

If you ask me, closing all these offices should have been the first thing to happen. RDs and DMs are supposed to spend most of their time in the stores anyway.

[MochaMax]

I am a Store Manager in the NW and I was informed that my Assistant Manager in not being laid off today.

[Bean Counter]

@ ME:

If you read the fine print on the bottom of the optimal scheduling form, it only states that P/T partners must be available to work 3 shifts per week. Whether or not those partners do is left to the SM or ASM's discretion. For example, I could work 2 weekday evening shifts and 2 weekend day sifts in a pinch, but if at all possible would like to limit myself to 1 weekday and 1 weekend shift. If Starbucks terminates these partners, it's called being fired WITHOUT cause. It would be interesting to see Starbucks' severance costs this year!

[anonasm]

x2, xCR, CM,

I'm sorry to hear about your sister. I know that this situation is probably happening all over the company, but yours is unique enough, that I think I know your sister, and that sucks. If it's who I think it is, it is a great loss to SBUX if she leaves.

[STARBUCKS GOSSIP WEBMASTER]

MeToo -- That's old news to the people who follow the Starbucks Gossip Twitter feel at http://www.twitter.com/sbuxgossip

Click on "follow" to ... folllow.

[MeToo]

@ Bean Counter:

Good point. Starbucks will finish closing the last of the initial 600 stores this quarter in addition to initiating the 200 additional ones. This plus lots of severance expenses means Starbucks will possibly report a narrow loss this quarter. Results will be released on April 27th.

Stock is currently trading even on the day.

[The ASM...well until Feb. 25th]

So I was demoted today to SS, I have been an ASM for a year now. However some are not as lucky as me, a lot more ASM were given severance -no demotion option. I understand why it has happened and I am happy that atleast I still have a job, for those who dont -I'm truly very sorry.

[Barista Ben]

Scary stuff. I guess I am glad I am not an ASM. Luckily my store just lost a shift to a real job where she will make good money - that leaves room for the few of us left. I am pretty sure I wouldn't be the first to go.

[MOG]

Having been downsized SIX times in another industry without ever actually losing my job (just mean and lucky), IT HAS NOTHING to do with your performance. I believe they use a dart board.

[BOSTON STARBUCKS REBEL]

http://www.walletpop.com/blog/2009/02/11/starbucks-planning-big-annoucement-on-february-17-the-suggestio/

Not sure if anybody caught this story. Could this be the secret program known as "Space Needle" or just another Pike Place Roast.

[Me]

Bean Counter, the thing is I do meet the requirements, but they are giving priority to partners with more hours available. Since my store ( and a lot of others, too) has a lot of people willing to sacrifice their school for the job and give f/t availability there won't be any hours left to give to the people only available p/t.
So far they just balance it all out. Come march they will just prefer the ones with more hours available. Unfortunately they didn't even look at the hours given to them. My store will have tons of problems after march, but I will still be out of a job since they are too pride to take good people back. They rather hire new, cheaper people.
And yes, I'm fired without cause. As are a lot of other people. So far I was assured there won't be any severance payment for Baristas. But of course I will look into that a bit further, if it is even legal to not pay severance in this case.

[buxy]

Points for clarification:

There are 300 additional store closure and it was announced that it would be approximately 6,000 retail partner separation during the conference call.

approximately 700 non-retail positions are being eliminated. approximately half in the field and half at the SSC. The first round of non-retail layoffs was last thursday, approximately 100 (40 SSC, 60 Field) partners were let go who formerly worked with P&AP and PR.

Approximately 1400 ASM positions cut (I assume part of the 6,000), about 870 of them were filled and the remaining ones were posted and will be closed.

Watching from within,

Buxy

[7yrs4nothing]

I got laid off today too. I have been with the bux for 7 yrs. and a 3 week severance pkage is ludacris. Any ASM in MI still have job or receive demotion?

[WORRIED SS]

THIS WHOLE GETN LAID OFF IS CRAZY... STARBUCKS DOESNT REALLY KNO WHICH WAY 2TURN... MY HEART GOES OUT 2ALL THAT LOST THEIR JOB... ALSO ITS SCARY B/CUZ I DONT KNO IF IM THE NEXT 2GO. N MY STORE 5 WERE LET GO (WEL THIS IS THEIR LAST WK.) I AM SADDEN... N THE WEIRD PART IS THAT MY DM ASKED THOSE THAT WERE LET GO YEST PLZ DONT MENTION IT 2THE OTHER PARTNERS.. LIKE WTF??? THIS ALL OVER THE MEDIA N THOSE THAT WERE LEET GO R HURT SO YES THEY R TALKN ABOUT IT... SMH... I JUS HOPE 4DA BEST... WE ALL JUS HAVE 2STAY TUNE... SERIOUSLY I BLIEVE THAT THERE R MORE 2COME... SO SAD...

[LC]

I am a shift supervisor have been with the company for 12 years, I have all good reviews but I am wondering if the partners who have been with the company for along time are the next to be cut?

[Melody]

@buxy - thanks for helping to clarify the numbers. So does that mean that there are still many more layoffs coming at the SSC? I assumed when the announcements first were made that almost the entire portion of layoffs coming were the result of the additional 300 store closures. 300 stores closing is still a lot of people. Even if each one of them had just 10 people ...

[Bean Counter]

@ Me:

Whoever you consulted regarding no severance is obviously playing fast and loose with employment law in Canada. A good friend of mine who works in HR at Telus told me that if Starbucks was to fire partners over so-called availability issues after the company changed the measuring stick (meaning you were hired under different rules), Starbucks has no choice but to pay severance. Furthermore, if your store is anything like mine, start documenting all the times you've filled a last minute shift when the management team has pleaded with you to come in when nobody else was available!

[PAMGR]

Well if i remeber right an ASM was/is a roll of a stepping stone to be a MGR (8 weeks or 8 months blocks) if you were still a ASM for longer than 2-3 years and MGR postions where filled in other store from outside ppl. You need to ask yourself, am i a future MGR or a very high paided SS? Now with whats going on this year, with no new stores and more MGRs than current stores out there, why should SBUX have AMGRs waiting on the bench?

[buxy]

@ Melody

so 700 not field positions, about half here at the SSC
- last week we elminited ~100 of those 700 non-retail positions so now there are ~500 non-retail positions left to elminate today

so far on the list that I'm looking at I know about 5 partners that are gone ... :-/

speaking on store closure causing the ~6,000 separation I think the figure for relocating partners that were affected by the initial 600 store closures was about 70% of them were able to move into other stores ... I think the big number on retail separations is this big ASM hit (~1400 positions) and then we will probably be less successful relocating partners since we've already played that shuffling game and there are fewer and fewer stores to shuffl them into