The Middle East franchise operator of Starbucks has fired approximately 2,000 employees across its coffee shops in the region, citing pressures stemming from activism during the Israel-Hamas conflict in Gaza. Alshaya Group, based in Kuwait and holding franchise rights for various Western brands like The Cheesecake Factory and H&M, confirmed the layoffs in its Middle Eastern and North African outlets.
“Due to sustained challenging market conditions over the past six months, we regretfully made the tough decision to downsize our workforce in Starbucks MENA stores,” stated the company.
The layoffs primarily affect foreign workers from Asian countries, a significant portion of Alshaya’s workforce in the Gulf Arab states. The group operates about 1,900 Starbucks branches across multiple countries in the region, employing over 19,000 individuals before the layoffs, according to figures from the Seattle-based coffee chain. The job cuts represent slightly over 10% of its workforce.
Since the conflict erupted on October 7, Starbucks, along with other Western brands, has faced scrutiny from pro-Palestinian activists. The company has actively countered what it terms as “misleading information” circulating online.
“We have no political agenda and do not allocate profits to support any government or military activities anywhere,” emphasized Starbucks.
In October, Starbucks filed a lawsuit against Workers United, a union representing workers in hundreds of U.S. Starbucks stores, following a pro-Palestinian post on a union social media account. The company aimed to prevent the use of its name and likeness, responding to criticism from pro-Israel demonstrators and boycotters who felt Starbucks wasn’t adequately supporting Palestinians in Gaza.
Although Starbucks reported a record revenue of $9.43 billion for the October-December period, an 8% increase, it fell short of analysts’ $9.6 billion forecast, potentially impacted by activist-led boycotts.
The coffee chain isn’t the sole target of activists during the conflict, with calls for a boycott against McDonald’s after an Israeli franchisee announced free meals for Israeli soldiers in October.
