There was once a time when you couldn’t miss Starbucks because there were at least several in the trendiest areas of town; but now times are tough and the once expanding giant is rapidly contracting. According to an article in the Dallas Morning News, Starbucks is closing 300 stores (that’s in addition to 600 stores which were already slated to close six months ago) and implementing 6,000 job losses because of drastic changes in American spending.
The drastic shift to implementing job losses and more store closings comes after the company announced a 70 percent drop in net income for the first quarter which ended December 28th. A 70 percent drop? That’s huge, even the robust Starbucks can’t absorb that kind of blow.
Starbucks is struggling for its life. Will we see a Starbucks bankruptcy? In this environment, no company is immune to bankruptcy. Dallas-Fort Worth has 190 Starbucks, 30 of them have already been targeted for closure.
Could we see more job losses in Dallas-Fort Worth because of the Starbucks job losses? It’s possible; but a little surprising as the “service industry” was supposedly expending; but it seems that so much economic turmoil has completely upset the ecology of the economy that even Starbucks needs to implement massive job losses.
Will McDonalds be next on the job loss circuit? Of course we know that the two companies target different markets; but it seems that all industries are now cutting back to save themselves from bankruptcy. Who will be next?