The company behind Starbucks in the Middle East has revealed plans for job losses, which reportedly could amount to 2,000, amid a consumer boycott linked to Israel's war against Hamas.
Alshaya Group, which owns the franchise, plans to lay off 4% of its workforce of 50,000 employees in the Middle East and North Africa region, according to Reuters news agency, citing several sources.
It stated that the bulk of the jobs will go to the Starbucks franchise business.
“As a result of the ongoing difficult trading conditions over the past six months, we have made an unfortunate and very difficult decision to reduce the number of our associates in Starbucks stores in the Middle East and North Africa,” said Alshaya, based in Kuwait.
The statement added: “We will ensure that we provide our colleagues who are leaving and their families with the support they need.”
Associated province the war It has proven to be a drag not only on Alshaya's business, but also on Starbucks itself, as royalty payments have been affected.
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The chain has faced protests outside the region as well, especially in the United States.
It is linked to suspicions of pro-Israel bias, which the company denies, insisting it is neutral.
Activists from the Chicago Youth for the Liberation of Palestine group protested in support of the Palestinians at a Starbucks branch in the city last December. Photo: Reuters
Some customers withdrew their benefits after Starbucks took legal action in October last year against an employee group seeking union rights, called Workers United, which used the Starbucks name and a similar logo.
A post from the Union’s social media account in October expressed solidarity with the Palestinian people before it was deleted.
“We see protesters affected by the misrepresentation on social media of what we stand for,” CEO Laxman Narasimhan later said in a letter to employees.
It was later revealed The extent of the damage to sales From the boycott after it violated market expectations for the first quarter results.
Alshaya has owned the rights to operate Starbucks cafes in the Middle East since 1999.
