Starbucks job cuts in region over Gaza war boycotts
AlShaya Group, the Middle East franchisor for Starbucks, is slashing over 2,000 positions, about 4% of its nearly 50,000-strong workforce, mainly within its Starbucks operations.
This move follows a significant boycott sparked by the perception that Starbucks supports Israel, particularly during the Gaza conflict.
AlShaya stated that the past six months' tough market conditions necessitated the regrettable reduction of staff in its MENA Starbucks locations. Starbucks has committed to collaborate with AlShaya to foster growth in this crucial area.
The consumer boycott, a response to Israel's actions in Gaza, has impacted several Western brands. Starbucks, amid rumors of its affiliation with the Israeli military or government, clarified its stance as non-political in October.
By January, the company acknowledged the Gaza conflict's negative implications on its sales throughout the Middle East and the US.
Founded in 1890 in Kuwait, AlShaya is a significant retail franchise operator in the region, managing a portfolio of Western brands such as the Cheesecake Factory and Shake Shack.
Since 1999, it has held the rights to operate Starbucks stores in the Middle East. The franchise oversees approximately 2,000 Starbucks locations in 13 countries across the Middle East, North Africa, and Central Asia.
AlShaya stated that the past six months' tough market conditions necessitated the regrettable reduction of staff in its MENA Starbucks locations. Starbucks has committed to collaborate with AlShaya to foster growth in this crucial area.
The consumer boycott, a response to Israel's actions in Gaza, has impacted several Western brands. Starbucks, amid rumors of its affiliation with the Israeli military or government, clarified its stance as non-political in October.
By January, the company acknowledged the Gaza conflict's negative implications on its sales throughout the Middle East and the US.
Founded in 1890 in Kuwait, AlShaya is a significant retail franchise operator in the region, managing a portfolio of Western brands such as the Cheesecake Factory and Shake Shack.
Since 1999, it has held the rights to operate Starbucks stores in the Middle East. The franchise oversees approximately 2,000 Starbucks locations in 13 countries across the Middle East, North Africa, and Central Asia.