Starbucks' franchisee in the Middle East, Alshaya Group, is implementing significant job cuts at its coffee shops. The company cited a challenging work environment amid boycotts linked to the brand's association with Israel's war against Hamas in Gaza. 

Starbucks to Lay off Thousands of Workers in the Middle East

According to CNN, Alshaya attributed the Starbucks layoffs to "continually challenging trading conditions" over the past six months and expressed sadness on its "very difficult decision to reduce the number of colleagues" at its Starbucks locations in the Middle East and Northern Africa.

While the company did not specify the exact number, Reuters reported that the layoffs would affect 2,000 people, a claim that Alshaya did not refute. 

The Kuwait-based company, which has held Starbucks operating rights in the Middle East for over 25 years, manages approximately 1,300 locations across the region and employs around 11,000 people. The company thanked the departing employees for their contributions.

"We will ensure that we give our colleagues leaving the business, and their families, the support they need, and we would like to express our deepest thanks for their hard work and dedication to Alshaya Group and the Starbucks brand," the company said, as CNN reported.

Read Also: Starbucks Accused of 'Flawed' Union Strategy by Labor Coalition

Starbucks Fighting False Information

Since the Israel-Hamas war started on October 7, Starbucks and other Western businesses have been targeted by pro-Palestinian activists over the war, according to the Associated Press.

Starbucks has vigorously tried to counter the "ongoing false and misleading information" spread online. The company said it has no political agenda and has never used its profits to fund any government or military operations.

Last October, Starbucks sued Workers United, a union that organized workers in 370 US Starbucks branches, over a pro-Palestinian statement on its social media account, which drew protests from pro-Israel demonstrators.

Starbucks then wanted the union to stop using its name and likeness. Protesters criticized Starbucks for the lack of support for Palestinians in the Gaza Strip. 

Despite revenue rising 8% to a record $9.43 billion for the October-December period, Starbucks missed the $9.6 billion analysts had forecast, possibly due to activist boycotts.

Read More: McDonald's, Starbucks Experience Sales Decline as Israel-Hamas Conflict Drags On