Starbucks slashing 5 percent of workforce

Starbucks slashing 5 percent of workforce
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Starbucks plans to slash 5 percent of its corporate workforce as part of a greater overhaul of the company that includes closing hundreds of U.S. stores, expanding its mobile operations and focusing more on China. 

The company's CEO Kevin Johnson distributed a memo this week saying layoffs would affect 350 employees, including those on the marketing, creative and technology teams, CNBC reported.

Johnson in the memo said the cuts are the result of "work that has been eliminated, deprioritized or shifting way of working within the company," according to NBC.   

Starbucks is working to become a more nimble company this year as it seeks to stave off competition from coffee competitors in the U.S.

The coffee giant has been increasingly successful in the Chinese market, with one store opening every 15 hours in the country, Starbucks' China CEO Belinda Wong said. 

Meanwhile, its sales in the U.S. have been lagging, according to CNBC.

Its new strategy seems to be working, however, with Starbucks reporting a record $6.3 billion revenue in the U.S. last quarter, NBC noted.

Same-store sales rose in the U.S. by 4 percent and 1 percent in China last quarter, which Johnson said "provide[s] encouraging evidence that our plan is working" during a call with investors last month.