Corporate Restructuring

Tighter credit, depleted retirement savings and environmental concerns are among the forces reshaping the U.S. auto market into something that looks more like Europe and the rest of the world -- where people buy smaller, more efficient cars and hold on to them longer. Although every automaker is feeling the pressure, Chrysler, which filed for bankruptcy protection Thursday, and General Motors, which is on the road to taxpayer ownership, have been sideswiped hardest by careening change.

Starbucks Corp. said Monday that it was returning its chairman, Howard Schultz, to the chief executive's job to lead a major restructuring initiative, replacing Jim Donald. The move, coupled with plans to open new U.S. stores at a slower pace, comes as the world's largest chain of coffeehouses has seen its stock plummet 50% over the last year amid declining traffic in its domestic stores. Starbucks' announcement after regular markets closed sent the company's shares up $1.

Nearing the end of his third year as chairman of Paramount Pictures, Brad Grey has again realigned his top management team in hopes that the studio can produce more homegrown hits as it braces for a future without its key movie supplier, DreamWorks.

First American Corp., the largest U.S. title insurer, will split into two publicly traded companies by separating its financial information and underwriting businesses. The stock rose 7.1%. The unit with the title and specialty insurance operations will be spun off to shareholders, the Santa Ana-based firm said in a statement Tuesday. The existing holding company, to be renamed, will consist primarily of businesses that provide data on mortgages, properties and credit.

How much should a company's culture reflect its chief executive, especially one who prides himself on being a blunt and innovative -- some might say abrasive -- businessman? If you're new Tribune Co. CEO Sam Zell, the answer seems to be: A lot. At least that was the feeling workers got Wednesday with the distribution of a new employee handbook, a document that's nothing like the mind-numbing, lawyered gobbledygook in most corporate manuals. Consider the opening: "Rule #1: Use your best judgment."

Richard Breeden, founder of activist investment fund Breeden Capital Management, has one goal this year: no proxy battles. But he acknowledges achieving this is unlikely, given his record. Since founding his $1-billion-plus firm 18 months ago, he has launched two major proxy battles that have won him seats on the boards of H&R Block Inc. and Applebee's International Inc. And last Friday, jewelry chain Zale Corp. gave up without a fight, giving Breeden two seats on its board.

Silicon Valley entrepreneur Sramana Mitra captured a common sentiment in the title of a blog post last week: "Yahoo, Please Put Up a Fight." As its growth slows, Yahoo Inc. has taken steps to reorganize its management structure, narrow its focus and jettison some underperforming businesses. But it's still being outmatched in search advertising dollars by Google Inc. and in user growth by social networks such as Facebook Inc., which are rapidly gaining members and advertisers.

Macy's Inc. announced a restructuring Wednesday that involves cutting 2,300 jobs and closing some division headquarters as the department store operator tries to reduce costs and offset declining sales. Macy's also said January sales at stores open at least one fiscal year fell a more-than-expected 7.1% and forecast fourth-quarter earnings that, excluding a tax credit, would miss current Wall Street targets.

Polaroid Corp. is dropping the technology it pioneered long before digital photography rendered instant film obsolete to all but a few nostalgia buffs. Polaroid is closing factories in Massachusetts, Mexico and the Netherlands and cutting 450 jobs as the brand synonymous with instant images focuses on ventures such as a portable printer for images from cellphones and Polaroid-branded digital cameras, television sets and DVD players.

Wilsons the Leather Experts Inc. will close the majority of its 260 mall locations and cut more than 1,000 jobs, the clothing retailer said Friday. Wilsons will keep 100 stores open, revamping them under a "Studio" concept focused on fashion accessories for women. All stores should be remodeled by August. About 938 store-related jobs and 64 positions at the company's corporate headquarters, overseas offices and distribution center in Brooklyn Park, Minn., will be cut.