(Reuters) -Starbucks is set to reduce weekly production at its five U.S. coffee roasting and packaging facilities by two days starting in January, Bloomberg News reported on Friday, citing people familiar with the matter.
The coffee chain, which is undergoing an overhaul under CEO Brian Niccol to cut costs and reinvest in its stores, 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 five plants will adopt a five-day schedule, and the reduction will help pay for upgrades elsewhere after the company found it no longer needs to operate the facilities seven days a week to meet current demand, Bloomberg reported, citing one of the people.
The plants are located in Georgia, South Carolina, Pennsylvania, Nevada and Washington state and produce coffee for Starbucks’ stores as well as packaged coffee the company sells at retailers and grocery stores.
(Reporting by Juveria Tabassum in Bengaluru; Editing by Mohammed Safi Shamsi)
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