Starbucks to cut 6,700 jobs, close 300 stores

Starbucks the international corporation of coffee would cut more than 6,700 work and also would close hundreds of stores, because the low demand of coffee that have presented because the recession. The company has changed his plan of opening new stores, this situation would cost more than 500 million dollars to saving in 2009. Edward Jones, analyst Jack Russo said that this cuts will decline sales in Starbucks, but the analysts think that this is a transition year, Starbucks will find the way back.
From closing the 600 stores in the United States and 61 stores in Australia, the company said it earned 15 cents for each in its first quarter. Profits to $2.62 billion from $2.77 billion, while analysts had predicted revenue of $2.70 billion. The revenue drop stemmed from a 9 percent decline in the store sales at locations open at least a year.
The company said it plans to open only 140 new stores in United States in fiscal 2009, down from its previous target of 200. In other countries it will open 170, down from the 270 it had planned to open. The company also said it will not provide any sales or earnings guidance.