Sources revealed on Tuesday, March 5th, 2024, that Alshaya Group, a retail giant in the Gulf region and the owner of Starbucks franchise in the Middle East, plans to lay off more than 2000 of its employees due to the impact of consumer boycotts linked to the Gaza war.
The sources, who requested anonymity as the matter is still confidential, stated that the job cuts, which began on Sunday, target around 4% of Alshaya’s total workforce of approximately 50,000 people, mostly concentrated in Starbucks branches in the Middle East and North Africa.
One source stated that the boycott campaigns have led to difficulties in the company’s working conditions.
Boycott campaign against Starbucks Earlier reports revealed that the American company Starbucks incurred losses of over $12 billion in 20 days amid a worker strike crisis and wide boycott campaigns targeting it due to its support for the Israeli occupation in its aggression against Gaza.
Trading indicated that the company’s stocks recorded a decline following a sales decrease of over 1%, marking the biggest loss for the company since its initial public offering in 1992.
It also lost more than 10% of its value since November 16th, when thousands of workers left their jobs in the United States.
Workers at hundreds of Starbucks branches in the United States went on strike on November 16th, demanding improved working conditions.
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As a result, the company’s market value dropped by over $12 billion in 20 days, to $110 billion.
On October 19th, after Starbucks filed a lawsuit against its workers’ union under the pretext of their support for Palestine, campaigns escalated on social media platforms calling for boycotting the famous American coffee chain worldwide.
American and European brands face pressure from the boycott campaign across the Middle East and the world, where consumers turn to local alternatives in protest against Western governments’ support for Israel, which has been waging a devastating war on the Gaza Strip for months, resulting in the deaths of thousands of civilians.
