Starbucks, which had been losing money since middle of 2008, will stop brewing decaffeinated coffee after noon to save $400 million by September. But the decaf version will still be available in the afternoon since it takes just four minutes to make a fresh brew.

In a statement, Starbucks explained, "For many of our stores, the demand for decaf is greatly reduced in the afternoon... With our current standard of continually brewing decaf after 12 noon regardless of demand, we have seen a high amount of waste."

Starbucks would also use smaller pots to brew coffee to cut cost and wastage if the brew is not purchased within the company's 30-minute maximum limit. Part of Starbucks chief executive officer Howard Schultz's cost cutting measures are to close outlets in the U.S. and Australia and cut excess use of milk in lattes and cappuccinos.

Because of Starbucks' poor financial performance, its stocks have lost 53 percent of their value the past 12 months. On Tuesday, Starbucks shares closed at $9.15 at the Nasdaq Stock Market composite trading, up by 15 cents.