Starbucks sacks chief executive

Starbucks' US trade has been slowing

Starbucks has sacked its chief executive Jim Donald and handed the reins back to its chairman and former chief executive, Howard Schultz.

The announcement saw shares in the firm jump more than 10% in early Tuesday trading on Wall Street.

The news is part of the coffee giant's plans to lift its fortunes, which also includes closing some US stores and slowing the pace of opening new ones.

Starbucks shares have fallen 50% in the past year as its US sales have slowed.

It will give more details of its plans when it reports results on 30 January.

Mr Schultz previously served as chief executive from 1987 to 2000

Other initiatives will include new products and store designs and improved staff training.

Starbucks also plans to take some of the money it was going to spend on opening new stores in the US and spend it on opening stores elsewhere.

Starbucks has been struggling in the US as consumers hit by the slowdown have cut back their spending on expensive coffee.

There has also been increased competition with the likes of Dunkin' Donuts and McDonald's introducing their own lines of gourmet coffee.

In morning trading in New York, Starbucks shares were up 10.3% to $20.28.