Starbucks Wakes Up, Smells the Coffee

Starbucks (SBUX) announced a major change of course yesterday when the hyper-expansive coffee retailer announced that it will shutter 600 under-performing stores and lay off as many as 12,000 employees as it comes to terms with an unexpectedly difficult operating environment. CEO Howard Schultz, who built the iconic company from its Seattle roots into a national chain and one of the most recognizable brands in the world, recently was brought back to try to rekindle some of the magic as the company’s shares have fallen over 60% from their all time high reached in 2006 and are now trading at levels not seen in five years.

Schultz has been working frenetically to turn things around at Starbucks. Since his return to the helm, SBUX has dropped breakfast items from its menu, announced a reduction in planned store openings and the closure of 100 under-performing, company-