After spending the first half of the year exploring different initiatives meant to direct the coffee company towards a successful future, they've come to terms with the numbers and have announced their plan to close 600 underperforming stores and get rid of 12,000 jobs. That second number represents about seven percent of the company's global workforce.
The news is obviously not good for those employees whose positions will be eliminated, but is anyone actually surprised that so many stores will be closing? The company seems to have learned the hard way that too much of a good thing isn't so great. Their initial success spawned the opening of its stores in every coffee-drinking town and city it could, and its overachieving growth has led to its current demise. The decision to proliferate in booming California and Florida is one that the company now regrets — the housing crises hit these places the hardest and people are less likely to grab a jazzed up cup of joe when they can't pay their mortgage.