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Starbucks closing 600 stores in the US

After more than a decade of sensational buzz, Starbucks is struggling nationwide as it faces slowing sales growth and increased competition. The U.S.-based coffee chain has announced plans to close 600 stores in the United States in the next year due to the weak U.S. economy.

The Seattle, Washington-based coffee seller announced the move Tuesday during a conference call with reporters. The company says about 12,000 employees, or 7 percent of its global workforce, will lose their jobs because of the closures. Starbucks uses a substantial amount of Costa Rican coffee and also pays top dollar for the product.

Starbucks’ Chief Financial Officer Peter Bocian said many of the stores being closed were located near other Starbucks stores. Because of the company’s aggressive expansion practice, it is not uncommon in the United States to see two of the shops within blocks of or even across the street from each other.