Alshaya Group, the franchisee for Starbucks in the Middle East, is reportedly laying off thousands of employees across its coffee shops due to what it calls “continually challenging trading conditions” over the past six months. The move comes as Starbucks faces boycotts related to the brand’s association with Israel’s conflict with Hamas in Gaza.
In a statement to CNN, Alshaya confirmed the layoffs, citing the difficult decision to reduce the number of colleagues at Starbucks locations in the Middle East and Northern Africa. While the company did not specify the exact number of job cuts, Reuters reported that it amounts to around 2,000 people.
Alshaya, based in Kuwait, has held the rights to operate Starbucks in the Middle East for more than 25 years, managing approximately 1,300 locations across the region and employing roughly 11,000 individuals.
The challenging work environment is believed to be linked to customer boycotts of Western companies in the Middle East, as consumers perceive these businesses as supporting or having ties to Israel’s conflict in Gaza. Starbucks’ recent earnings report also indicated weaker sales in the region, contributing to the company missing expectations.
A Starbucks spokesperson expressed gratitude to the departing employees and affirmed the company’s commitment to collaborating with Alshaya for long-term growth in the region. Other fast-food giants, including McDonald’s and Yum! Brands, have also reported business impacts in the Middle East due to the ongoing conflict.
