AOL and Starbucks Announce Major Job Cuts: Round Two of Layoffs

AOL to cut about 700 jobs, Starbucks to slash up to 6,000, close 300 stores.

ByScott Mayerowitz and Alice Gomstyn<br/> Abc News Business Unit
January 28, 2009, 4:54 PM

Jan. 28, 2009&#151; -- The year is off to a somber start for many workers, with news of more job cuts coming amid tough times generally. Major companies announced massive layoffs this week, blaming the weak economy.

AOL Inc. chief executive Randy Falco sent an internal memo to employees today about plans to cut about 700 jobs, 10 percent of its workforce. AOL, a division of Time Warner Inc., serves as an Internet services and media company. But with the recession, many online marketers are tightening advertising budgets. Other cost-cutting measures include freezing salary increases.

Starbucks announced today plans to slash as many as 6,000 jobs and close 300 stores this year. The Seattle-based coffee giant reported a 69 percent drop in profit for the fiscal first quarter. Last summer, the company announced it would close 600 stores, laying off 1,000 employees.

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