STARBUCKS CLOSING 600 STORES IN THE US

STARBUCKS CLOSING 600 STORES IN THE US

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STARBUCKS CLOSING 600 STORES IN THE US

Starbucks, the US coffee retailer, has said it will close 600 US outlets and cut up to 12,000 jobsin the next year, as the company struggled to compete in the faltering US economy.

The announcement was made shortly before US car manufacturers said sales had plunged to their lowest level for at least 15 years.

Starbucks plans to close the outlets by the end of March 2009 and the related job cuts would reduce the company's US workforce by at least seven per cent...



Starbucks, the US coffee retailer, has said it will close 600 US outlets and cut up to 12,000 jobsin the next year, as the company struggled to compete in the faltering US economy.

The announcement was made shortly before US car manufacturers said sales had plunged to their lowest level for at least 15 years.

Starbucks plans to close the outlets by the end of March 2009 and the related job cuts would reduce the company's US workforce by at least seven per cent.

The news of the cutslifted Starbucks shares by nearly five per cent.

Valerie O'Neil, a Starbucks spokesperson, said most of the employees affected by the cuts would be moved to nearby shops, but that she did not know exactly how many jobs would be lost.

Peter Bocian, Starbucks chief financial officer, said the decision to make the cuts should improve the company's domestic profitability.

Boyce Watkins, a US economic expert, told Al Jazeera that Starbucks had expanded rapidly and felt it could do nowrong in the market.

Howevr,in reality it was not able to maintain its high growth andthe company's move toconcentrate on profits and not market dominancewas the right one.

Fuente: http://english.aljazeera.net

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