Coffee shop retailer Starbucks will close 300 stores and eliminate 6,700 jobs as the premium coffee outlet finds it hard to thrive in the struggling economy, the company said Wednesday.

Pedestrians walk pass a Starbuck coffee shop in Washington on Jan. 29, 2009. Starbucks said Wednesday it was slashing 6,700 jobs and closing 300 stores in a further belt-tightenting by the coffee house giant to cope with a rapidly weakening global economy.(Xinhua/AFP Photo)

The job cuts coincided with an earnings report which saw its quarterly revenue fall 6 percent to 2.6 billion dollars, with same store sales falling 9 percent. Profit plunged to 64.3 million dollars from 208 million in the same period a year earlier.

Demand for Starbucks’ pricey drinks has plummeted in the economic downturn as customers turn to cheaper alternatives offered by companies like McDonalds and Dunkin Donuts. As of the end of last year, Starbucks still operated more than 11,500 stores in America and 5,000 more internationally.

VietNamNet/Xinhuanet