In 2008, there was an economic downturn in the US and Americans began pinching pennies. Starbucks felt the burden of Americans watching their spending more than some other companies. In the third quarter of 2008, Starbuck's profits fell 28% compared to the same time the year previous.
In reaction to the economic downturn Starbucks closed 600 of their poorly performing locations. And decided to open 200 fewer stores than planned in 2009. Also, along with these store closings comes job loss. Although they tried to place their employees who worked in the closed stores in locations that were still operating, Starbucks announced they had to cut its workforce by 600 employees.
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