Starbucks to Close 600 Stores

SAN FRANCISCO -- In a sharp reversal of its growth plans that led to an oversupply of stores, coffee behemoth Starbucks(SBUX Quote) will shutter about 600 locations while opening fewer than 200 by the end of the fiscal year.

The U.S. closures, which include 100 stores that Starbucks had previously planned to close, will result in cutting up to 12,000 full-time and part-time jobs, although the company said it will try to reassign as many people as possible.

Shares of Starbucks climbed more than 7% in recent after-hours trading to $16.72.

In January, amid slumping sales at the popular chain, Chief Executive Howard Schultz revealed a transformation plan intended to win back customers. This included the shuttering of underperforming stores -- an effort that has been stepped up since Starbucks reported a 28% profit decline in the second quarter. ...