Starbucks today announced that it is cutting 1,000 non-store jobs and closing more than 60 stores in Australia in a cost-cutting move.
The move came as the coffee shop giant revealed that it made a loss of $6.7m (£3.4m) for the 12 weeks to 29 June, compared with a profit of $158.3m (£79.9m) a year earlier.
Starbucks' UK and Ireland sales have largely held up against the global decline, but the third quarter saw a slowdown in customers, the results revealed today.
In an effort to combat this, the company is now offering complimentary cup of filter coffee to all customers who buy a hot drink in its 670 UK and Ireland stores.
Starbucks, which first admitted sales were "softening" in the UK in May, said the policy is aiming to "engage the customer with the coffee experience".
By Daniel Thomas
E-mail your comments to Daniel Thomas here.