The company said that as part of an ongoing evaluation of its business, it plans to close approximately 300 underperforming company-operated stores, with about 200 in the U.S. and the remainder in international markets.

Message From Howard Schultz

These stores are in addition to the approximately 600 U.S. and 61 Australian market store closures announced in July 2008.

The majority of the new store closures are expected to occur during the remainder of fiscal 2009.

The release said the store closures, combined with reduced store openings in 2009, could result in a reduction of as many as 6,000 store positions. In addition, 700 non-store positions will be eliminated, with half coming from the company's support center in Seattle.

Other cuts included reduced vacation benefits for U.S. employees with less than 3 years of service, and no guaranteed company match for 401(k) savings plans.

VIDEO: Employees, Businesses React To Starbucks Cuts

CEO and company founder Howard Schultz, whose annual salary was most recently $1.2 million, has requested that his salary be reduced to less than 10,000 a year.

The company said its net income fell to $64.3 million, or 9 cents per share, from $208.1 million, or 28 cents per share a year earlier.

Analysts polled by Thomson Reuters expected quarterly earnings of 17 cents per share.

Revenue fell to $2.62 billion from $2.77 billion, while analysts had predicted revenue of $2.70 billion.

The coffee chain has been struggling to bring in customers as the recession deepens and more coffee lovers forgo the small luxury of $4 lattes.