Mainland to escape Starbucks layoffs

Staff reporter and agencies

Starbucks' recent layoff plan reportedly will not involve its China business, according to mainland media reports.

This came amid news that global investment giants are showing interest in a stake in the mainland business.

Starbucks staff had said that the company maintains its optimism toward the Chinese market, according to the report.

The coffeehouse chain earlier announced that it would eliminate 1,100 corporate roles as chief executive Brian Niccol pushes ahead with his turnaround efforts for the company, which has been struggling with declining sales.

Starbucks employs about 211,000 people in the United States and around 150,000 employees internationally.

Meanwhile, KKR & Co, Fountainvest Partners and PAG are among buyout firms interested in acquiring a stake in Starbucks' China business, four sources said, as the US coffee chain looks to revive flagging sales in its second-largest market.

Chinese companies, including state-owned conglomerate China Resources Holdings and food delivery giant Meituan (3690), have also been approached as potential buyers, said one of the sources.

Starbucks' executive vice president and chief financial officer, Rachel Ruggeri, is expected to be among senior company executives visiting China in the coming weeks to hold sales talks, said two of the four sources.

The size of the stake to be sold in Starbucks' China business has not been determined and would be subject to negotiations, the sources said.