Starbucks' MENA Crisis - Alshaya Group Cuts 2,000 Jobs

Starbucks' MENA Crisis - Alshaya Group Cuts 2,000 Jobs

Alshaya Group, the Kuwait-based franchisee of Starbucks, is set to cut over 2,000 jobs, accounting for 4% of its workforce, amid customer boycotts in the MENA region. The job cuts will primarily affect its network of nearly 2,000 Starbucks stores. These actions are being taken in response to "challenging trading conditions" exacerbated by the Israel-Gaza conflict. The conflict has significantly impacted customer traffic and sales in the region, leading to a tough business environment. Despite efforts to address misinformation on social media regarding its stance on the conflict, Starbucks has faced continued challenges. Founded in 1890, Alshaya Group has been Starbucks' partner since 1999 and has expanded its presence across the Middle East and North Africa. Moreover, there are reports of Alshaya Group considering the sale of about 30% of its Starbucks division, attracting interest from entities such as Apollo Global Management Inc and Saudi Arabia's Public Investment Fund.

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