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Effective URL: https://nypost.com/2024/03/05/business/starbucks-franchisee-fires-2000-workers-amid-israel-hamas-war-boycotts/
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MIDDLE EAST STARBUCKS FRANCHISEE FIRES 2K WORKERS AMID ISRAEL-HAMAS WAR BOYCOTTS
By
Associated Press
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Published March 5, 2024, 12:30 p.m. ET
Today's Business Headlines
The Middle East franchisee of Starbucks said Tuesday it has begun firing around
2,000 workers at its coffee shops across the region after the brand found itself
targeted by activists during the ongoing Israel-Hamas war in the Gaza Strip.
The Kuwait-based Alshaya Group, a private family firm holding franchise rights
for a variety of Western companies including The Cheesecake Factory, H&M and
Shake Shack, issued a statement acknowledging the firings at its Middle Eastern
and North African locations.
“As a result of the continually challenging trading conditions over the last six
months, we have taken the sad and very difficult decision to reduce the number
of colleagues in our Starbucks MENA stores,” the statement read.
Coffee shops across the region have been targeted by activists during the
ongoing Israel-Hamas war in the Gaza Strip. REUTERS
Alshaya later confirmed it was firing about 2,000 employees, as first reported
by Reuters. Many of its employees in the Gulf Arab states are foreign workers
hailing from Asian nations.
Alshaya runs about 1,900 Starbucks branches in Bahrain, Egypt, Jordan, Kuwait,
Lebanon, Morocco, Oman, Qatar, Saudi Arabia, Turkey and United Arab Emirates.
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It had employed more than 19,000 staff, according to the Seattle-based company.
The layoffs represent just over 10% of its staff.
Since the beginning of the war on Oct. 7, Starbucks has found itself alongside
other Western brands targeted by pro-Palestinian activists over the war.
The company prominently has been trying to counter what it describes as “ongoing
false and misleading information being shared about Starbucks” being spread
online.
“We have no political agenda,” Starbucks said. “We do not use our profits to
fund any government or military operations anywhere — and never have.”
In October, Starbucks sued Workers United, which has organized workers in at
least 370 U.S. Starbucks stores over a pro-Palestinian message posted on a union
social media account.
“We have no political agenda,” Starbucks said. “We do not use our profits to
fund any government or military operations anywhere — and never have.” AP
Starbucks said it was trying to get the union to stop using its name and
likeness, as the post also drew protests from pro-Israel demonstrators.
Boycotters also felt the company wasn’t adequately supporting Palestinians in
the Gaza Strip.
Starbucks revenue rose 8% to a record $9.43 billion for the October-December
period.
43
What do you think? Post a comment.
But that was lower than the $9.6 billion analysts had forecast, likely in part
because of activist boycotts.
Starbucks isn’t the only brand targeted by activists in the war.
Others have called for a boycott of McDonald’s after a local franchisee in
Israel announced in October that it was providing free meals to Israeli
soldiers.
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