Aug 22 (Reuters) - Starbucks ( SBUX ) is set to reduce

weekly production at its five U.S. coffee roasting and packaging

facilities by two days starting in January, Bloomberg News

reported on Friday, citing people familiar with the matter.

The coffee chain, which is undergoing an overhaul under CEO

Brian Niccol to cut costs and reinvest in its stores, has been

struggling with weak demand in the United States for its pricey

beverages.

Last week, Starbucks ( SBUX ) also capped raises for all North

America salaried employees at a fixed 2% as part of its

cost-cutting measures. The company did not immediately respond

to a Reuters request for comment.

The five plants will adopt a five-day schedule, and the

reduction will help pay for upgrades elsewhere after the company

found it no longer needs to operate the facilities seven days a

week to meet current demand, Bloomberg reported, citing one of

the people.

The plants are located in Georgia, South Carolina,

Pennsylvania, Nevada and Washington state and produce coffee for

Starbucks' ( SBUX ) stores as well as packaged coffee the company sells

at retailers and grocery stores.