afaqs! news bureau

Starbucks in the Middle East is set to cut nearly 2,000 jobs: Reuters

In January, the conflict affected the company's business in the region, sales in the Middle East, and the US.

According to a report on Reuters, AlShaya Group, the Gulf retail giant controlling Middle Eastern rights to run Starbucks, is set to fire over 2,000 employees due to customer boycotts linked to the Gaza conflict.

The layoffs, which began on Sunday, represent about 4% of AlShaya's over 50,000-person staff and are primarily focused on the company's Starbucks franchise in the Middle East and North Africa. The company is facing difficult trading conditions as a result of the boycotts.

AlShaya stated that it was still committed to the area and would help coworkers quit the company. Starbucks spokespersons expressed their thoughts and gratitude for the contributions of the green apron partners who will be leaving the company. Starbucks remains committed to working closely with AlShaya to drive long-term growth in this important region.

AlShaya was founded in Kuwait in 1890 and holds the authority to run locations for well-known Western brands. Since 1999, it has held the licence to run Starbucks locations in the Middle East.

American private equity firm Apollo Global Management Inc has been in talks to purchase a portion of AlShaya's Starbucks company. Starbucks declared in October that it was a non-political organisation and refuted claims that it had given aid to the Israeli army or government. In January, Starbucks reported that its first-quarter profits fell short of market forecasts, citing the Israel-Hamas conflict as a factor in its declining regional business.

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