July 2, 2008
Starbucks to Close Stores, Fire 12,000 Employees
Starbucks has announced it's closing 600 stores in the U.S., bringing the total number down to approximately 9 gazillion, most of them located in Astor Place. Stocks have fallen 24% so far this year, and its second quarter was its weakest as a public company. The Seattle-based chain says it will try to relocate employees to other stores, but thousands of layoffs loom. Financial analyst Sharon Zackfia tells the Times, “I don’t think it’s overly surprising. These stores were in aggregate unprofitable.” No word yet on how many NYC Starbucks locations will close, but one hopes it’s kept to a minimum, because where else will we use the bathroom?
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As a shareholder: YES!
This was necessary.
Next step: STOP WITH THE CHEAP INSURANCE.
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finally the end is near, thank god - it's only coffee you addled lemmings!
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And bad burnt coffee at that.
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Rev. Billy 1
Starbucks 0
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I know Starbucks is the evil empire, but 12,000 people losing their jobs is nothing to celebrate. Sheesh.
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NOOO! Half empty to ghosttown starbucks are my favorite to frequent. It's like you've got this entire Coffeehouse just to yourself. You can lounge and sit in the entire place and just relax. Sure they are probably losing thousands of dollars a day but at least you are enjoying it soliarily. I never enter a crowded starbucks like the astor place ones.
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I've always thought that Starbucks is now for teenagers like McDonalds when I was that age... you either worked there yourself or knew someone that did.
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#2: The end isn't so near. They'll still have over 15,000 shops after they close these.
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It will be interesting to see how they make this business work - high volume, premium goods while attempting to maintain the perception of scarcity and atmosphere of comfort. I've all but sworn off Starbucks unless there's no other alternative and I'm going in to grab a quick coffee to take with me. I can no longer concentrate with the din of loud music and customers.
I wonder if they'll get push back from their merchandise and service partners (e.g., wifi providers, music retailers) who will undoubtedly suffer from lower sales as people spend less and less time in the retail locations.
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I think they will still have around 6,000 stores in the US.
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Well I really think they need to look closely at which stores they close...
There are 4 stores on Union Square -- all of them PACKED!!!! with lines at most of the hours...
Down in TriBeCa is the same... there is liek 4 stores in a 5 block radius - always a ten minute line to get your coffee... just doesnt make sense to me
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Sorry so many people will lose their jobs. Times are tough and folks can't shell out two bucks for a "tall" crappy Pike Place Roast blend coffee anymore.
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This is a Global recession and once this country is overcome by another Great Depression, the whole world will feel as well.
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Wow. Now I'll have to walk two blocks to an SBucks instead of one.
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all things said, starbucks is one of the few retail outlets that offers health insurance to its employees. quite a few of my current and former students work for starbucks and the insurance is a big deal for those of them who are also parents.
laying off so many people like them and seeing how many more women than men work at starbucks gives me a really bad vibe.
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They opened multiple locations close together to drive out any independent coffee shops. They did a pretty good job of it. Walk around 8th Ave in Chelsea -- there are THREE of them between 14th and 23rd.
Fuck Starbucks -- I never set foot in one if there's any other option.
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It's like 1999 is finally over.