Starbucks & AOL join in cutting jobs

Joining major companies cutting jobs as recession deepens, popular coffee giant Starbucks and internet services major America Online plans to lay off about 6,700 employees in the coming months. Starbus, which has reported a 69% drop in profit for the first fiscal quarter, has announced slashing its headcount by 6,000 and closing of 300 stores.

AOL chief executive Randy Falco sent an internal memo to employees about plans to cut jobs — 7,000 or 10% of its workforce.

Electronics parts maker Jabil Circuit says it is cutting 3,000 jobs mostly overseas, or nearly 4% of its work force, because of the global economic turmoil.

St Petersburg, Florida-based Jabil Circuit said about 10 of its global plant sites will be affected, and about 10% of the cuts will take place in the United States. It currently has 85,000 workers.

The company expects $55 million a year in cost savings as a result of the cuts, and will take a related pretax charge of about $65 million over fiscal 2009 and 2010.

About 3,000 Thai workers have reportedly lost their employment in the first month of 2009, while more than 60,000 others are at risk of losing their jobs soon, according to the ministry of labour.

Since the New Year, 50 private firms have closed, causing 2,863 employees to lose their jobs. Another 102 companies are likely to be impacted by the economic crisis, with 68,122 employees’ jobs to be affected. Of this number, 23,296 workers are likely to be laid off, while another 44,826 may be asked to reduce their working hours, director-general of the department of labour protection and welfare Amporn Nitisiri said in Bangkok.

In Malaysia more than 10,000 have lost their jobs since January 1, Malaysian Employers Federation (MEF) executive director Shamsuddin Bardan has said.

Agencies