Mideast Starbucks franchisee firing 2,000 workers after being targeted in Israel-Hamas war boycott

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The Middle East franchisee of Starbucks said Tuesday it has begun firing astir 2,000 workers astatine its java shops crossed nan region aft nan marque recovered itself targeted by activists during nan ongoing Israel-Hamas war successful nan Gaza Strip.

The Kuwait-based Alshaya Group, a backstage family patient holding franchise authorities for a assortment of Western companies including The Cheesecake Factory, H&M and Shake Shack, issued a connection acknowledging nan firings astatine its Middle Eastern and North African locations.

“As a consequence of nan continually challenging trading conditions complete nan past six months, we person taken nan sad and very difficult determination to trim nan number of colleagues successful our Starbucks MENA stores,” nan connection read.

Alshaya later confirmed it was firing astir 2,000 employees, arsenic first reported by Reuters. Many of its labor successful nan Gulf Arab states are overseas workers hailing from Asian nations.

Alshaya runs astir 1,900 Starbucks branches successful Bahrain, Egypt, Jordan, Kuwait, Lebanon, Morocco, Oman, Qatar, Saudi Arabia, Turkey and United Arab Emirates. It had employed much than 19,000 staff, according to nan Seattle-based company. The layoffs correspond conscionable complete 10% of its staff.

Since nan opening of nan warfare connected Oct. 7, Starbucks has recovered itself alongside different Western brands targeted by pro-Palestinian activists complete nan war. The institution prominently has been trying to antagonistic what it describes arsenic “ongoing mendacious and misleading accusation being shared astir Starbucks” being dispersed online.

“We person nary governmental agenda,” Starbucks said. “We do not usage our profits to money immoderate authorities aliases subject operations anyplace — and ne'er have.”

In October, Starbucks sued Workers United, which has organized workers successful astatine slightest 370 U.S. Starbucks stores. complete a pro-Palestinian connection posted connected a national societal media account.

Starbucks said it was trying to get nan national to extremity utilizing its sanction and likeness, arsenic nan station besides drew protests from pro-Israel demonstrators. Boycotters besides felt nan institution wasn’t adequately supporting Palestinians successful nan Gaza Strip.

Starbucks gross roseate 8% to a grounds $9.43 billion for nan October-December period. But that was little than nan $9.6 cardinal analysts had forecast, apt successful portion because of activistic boycotts.

Starbucks isn’t nan only marque targeted by activists successful nan war. Others have called for a boycott of McDonald’s after a section franchisee successful Israel announced successful October that it was providing free meals to Israeli soldiers.

The Associated Press

The Associated Press