Starbucks is now going to wish they never started charging over $4 USD for a small cappuccino. Announced this month the mega coffee chain will be laying off approximately 12,000 people as they begin to close 600 shops across the United States. Apparently most of the shops closing will be along the east coast and will take place from mid July to the end of 2009.

Over the last couple years they have been aggressively opening shops, at times opening locations in close proximity to each other. This possibly could have been the kiss of death. Apparently too much of a good thing can be detrimental.

No word yet on any closures in Canada.

Sunny Shum, Your Industry Insider