Real Impact of Israel Boycott, Starbucks Lays Off 2,000 Employees

JAKARTA – Starbucks terminates employment relations ( Layoffs ) 2,000 employees throughout the Middle East were affected by the Israeli boycott. Starbucks operators say business setbacks are behind the decision to lay off more than 10% of its workforce in the Middle East and North Africa.

“As a result of continued challenging trading conditions over the last six months, we have taken the very sad and extremely difficult decision to reduce the number of colleagues at Starbucks stores in the region,” Kuwait-based family business Alshaya Group said in a statement. Associated Press quoted by CBS News, Wednesday (6/3/2024).

The layoffs were first reported by Reuters. Alshaya operates approximately 1,900 Starbucks stores in Bahrain, Egypt, Jordan, Kuwait, Lebanon, Morocco, Oman, Qatar, Saudi Arabia, Turkey and the United Arab Emirates. Starbucks is one of a number of Western brands that have drawn criticism from pro-Palestinian activists since Hamas’ attack on Israel on October 7.

McDonald’s has also faced a boycott campaign over its stance on the conflict, while activists have also targeted Burger King, KFC and Pizza Hut, among other restaurant chains. McDonald’s CEO Chris Kempczinski said in January that the fast-food chain was experiencing significant business impacts in the Middle East and elsewhere related to the Israel-Hamas war.

McDonald’s also faced calls for a boycott after a local franchise in Israel said in October that it would distribute free meals to Israeli soldiers. “Rumors that Starbucks financially supports the Israeli government and its military are untrue,” the company said on its website.

As a public company, Starbucks is required to disclose all forms of donations made by the company. A Starbucks employee in Glen Rock, New Jersey, in February found red paint and antisemitic stickers related to the Israel-Hamas war on the store’s sign, police said. The Seattle-based company also sued Workers United over pro-Palestinian messages the union posted online.

(nng)