Thursday, July 31, 2008

Chronicles Of Depression 2.0: #178

Store closures wipe out profit at Starbucks
Starbucks slid to its first quarterly loss as a public company on Wednesday as charges related to its decision to close more than 650 cafés wiped out profits at the biggest US coffee shop chain.

The report came a day after Starbucks reshuffled its top management team and announced that it would increase to 13,000 the number of jobs to be cut by the company as part of a shake-up launched in January by Howard Schultz, chief executive.

Emphasis added by me.

That's basically a small town being thrown off the cliff.

Unemployment Insurance will help, but will all of their bills be covered in the course of a month? That very rarely happens.

And with states being constrained in their spending, the last thing they need is for the UI fund to be drained dry.

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