Starbucks Corp. announced that it would shut 616 company-owned stores by early 2009 as part of a broader plan to boost profit and traffic at its U.S. locations.
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California, Florida, and Texas are among the states with the most closures. But Las Vegas will be the city hardest hit, with 13 coffee shops shutting their doors. In Seattle, Starbucks’ home town, seven stores will go dark.
Overall, the shutdowns will shrink the retailer’s store base by 8% in the United States, where its company-operated sites numbered 7,250. Layoffs could total up to 12,000.