Rumour has it that Starbucks Corp. (SBUX) could cut another 1,000 jobs as the company struggles through the current economic climate. Although no official announcement has been made by Starbucks itself, the coffee chain has already closed 600 stores and slashed jobs throughout its operations over the past 12 months.

Official reports have however confirmed that CEO Howard Shultz and other employees at top management level did not receive any 2008 bonuses and they will neither get any base salary rises in the fiscal year 2009.

At the Analyst Conference in December 2008, Howard Schultz, Starbucks chairman, president and CEO, opened the conference by reaffirming the company’s commitment to its core values and principles. He outlined an operating approach that includes maintaining the loyalty of core customers through continued innovation and rewards, raising the bar on operational excellence and taking an aggressive approach to cost savings.

According to Shultz: “The entire retail sector is operating in a very tough economic environment.  While Starbucks has not been immune to the decline in consumer confidence, we are fortunate to have a world-class brand and a loyal customer base.”

Specific figures discussed at the Analyst conference included $200 to $210 million cost savings in fiscal year 2009 as well as another $200 million in savings potentially achieved from cutting labor costs and streamlining distribution.

Discussions over at StarbucksGossip.com are highly active and full of confusion, rumours and major dissapointment.

Time will tell what the official Starbucks position will be. The company is expected to releases its first-quarter results on Wednesday.

Starbucks Corp. shares are currently trading at $9.01, down 54.36 per cent over the last 12 months.

Image by carolyncoles under Creative Commons.