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SEATTLE - Starbucks Corp. says it's business as usual at its operations in Canada, despite the pending closure of 600 money-losing company-operated stores in the United States in the next year.

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AP

STRUGGLING ECONOMY PUTS STARBUCKS IN CHECK: Men play chess over a cup of Starbuck’s coffee in Alameda, Calif., Starbucks Corp. announced Tuesday it will close 600 company-operated U.S. stores in the next year, up dramatically from its previous plan for 100 closures, a sign the coffee shop operator is still feeling the pain from the faltering U.S. economy.

None of its 640 company outlets in Canada will be shuttered, the company said Wednesday.

The Seattle-based company said Tuesday it was trimming its operations in the United States after the faltering U.S. economy hastened the pain caused by the company's own rapid expansion.

Starbucks did not say which stores will be closed, only that they are spread throughout the United States. But it did say 70 per cent of those slated for closure had opened after the start of 2006.

Starbucks is closing 19 per cent of all U.S. company-operated stores that opened in the last two years, chief financial officer Pete Bocian said during a conference call.

About 12,000 workers, or seven per cent of Starbucks' global work force, will be affected by the closings, which are expected to take place between late July and the middle of 2009, spokeswoman Valerie O'Neil said.

O'Neil said most employees will be moved to nearby stores, but she did not know exactly how many jobs will be lost. Starbucks estimated $8 million in severance costs.

The company declined to say how many people it employs in Canada.