Catherwood LibraryILR School

Starbucks, the world's largest coffee retailer, will close 600 stores, leading to layoffs of 12,000 employees. The company, previously known for its aggressive expansion, has faced increasing difficulties as a result of the sluggish U.S. economy. Simply put, people aren't buying their mid-afternoon coffees anymore. In addition to the cutbacks, Starbucks said it would open fewer than 200 new stores in the United States next fiscal year, down from the 250 initially planned. Though the company has no plans to close additional stores, it is examining its options.