Starbucks Closes 600 Stores Nationwide

(ATLANTA) Starbucks announced to close a staggering 600 ( 5 percent) of it's coffee shops nationwide on Tuesday July 1st and today released the list of 600 stores up for closure. City goers in metro Atlanta are already feeling the decaffeinated process taking place with the abrupt closing of four shops.

"It's not good. If anything it gives me a bad feeling about the current state of our economy.", Atlanta businessman Alvin Rocheman says.

While citizens are certainly not pleased with the change, most find it to be inevitable. Starbucks shares have been on a decline for in excess of two years now and what some deem to be an "overpriced coffee chain" is being driven deeper and deeper into the freshly brewed financial mud.

According to spokeswoman Valerie O'Neil, workers will be affected by the closings which will "continue to take place into mid 2009." The corporate giant previously planned to eliminate 100 stores, but later stated that 500 unprofitable stores would be closed, the decision being made in May when a staggering 28% drop in profit was revealed. So, exactly how bad of a situation is this and what does it mean for the future of Starbucks?

As many as 12,000 workers will lose their jobs with the closings, but Starbucks is pushing that "workers will get jobs back at nearby stores" and "will be relocated." However, only 200 of the closing stores are managed by Starbucks, the other 400 are located within bookstores, airports and other venues-- making this an even harder feat to over come.

With high food and gas prices looming over the heads of every American, it's even more evident that we are in an economic crisis with the disruption of normal operational tactics by corporations. While many believe the closings are due to poor business and real estate decisions on Starbucks' part-- some say that this is just a precursor as to what could come and hopefully will not be passed along to other companies.

In a message addressed to employees and posted on the Starbucks website, Chief Executive Howard Schultz says, "By far, this is the most angst-ridden decision we have made in my more than 25 years with Starbucks.