The company which owns the most famous coffee-shops chain in the United States, Starbucks Corp., announced that it will close 600 shops that are mot profitable anymore and to sack 12.000 employees until the end of 2009. 70% of the number of shops that will be closed were opened last year.
The company opened a large number of shops in California and Florida, areas affected by the real estate crisis. This fact determined the loss of a large number of customers. Starbucks Corp. is trying to assure the fired employees new jobs in the shops that will remain open.
The news of the closing of 600 coffee shops came shortly after the company's announcemnt of expansion in France, Great Britain and Germany in the next years, according to "Forbes". The management is confident that the closing of the shops will be good for the company, which will succeed in fulfilling the business plan for 2009-2011.
Howard Shultz, the founder of Starbucks, said for "New York Times" that, even though is a risky tactic, the coffee-shops chain will be more involved i its relationship with the customers and will respond promptly to their needs. Meanwhile, the company's management announced that it will cancel all expansion projects.