Starbucks will scale back operations at its five U.S. roasting and packaging facilities starting in January, according to a Bloomberg report on Friday. The plants, which currently run seven days a week, will move to a five-day schedule as the company adjusts to softer demand for its premium beverages.
The shift is part of CEO Brian Niccol’s broader cost-cutting and reinvestment strategy aimed at revitalizing stores and operations. Earlier this month, the coffee chain also limited annual salary increases for its North America-based managers and corporate employees to 2%, another move tied to its belt-tightening measures.
People familiar with the matter told Bloomberg that the reduced production schedule will free up funds for facility upgrades, while still keeping pace with current demand levels.
A Starbucks store sign is seen in New York City
The five roasting sites—in Georgia, South Carolina, Pennsylvania, Nevada, and Washington state—supply coffee both for Starbucks’ cafés and for packaged products sold through grocery and retail partners.