Starbucks Announces Layoffs, Closures Amid Global Criticism Over Israel Stance
TEHRAN (Tasnim) - Starbucks revealed plans to cut approximately 900 non-retail jobs and close around 100 cafes across North America as part of a $1 billion restructuring effort to revitalize the embattled coffee chain.
The announcement on Thursday follows months of challenges, including declining U.S. sales and growing international backlash over the company’s support for Israel’s criminal actions in Gaza, which critics describe as an ongoing humanitarian crisis.
The layoffs build on earlier cuts of 1,100 corporate positions this year, with Starbucks also planning to eliminate numerous open or vacant roles.
The company attributes 90% of the restructuring costs—$150 million for employee severance and $850 million for store closures—to its North American operations.
Starbucks CEO Brian Niccol, in a letter to employees on Thursday, stated the measures are essential to create a “stronger, more resilient Starbucks.”
However, the company faces mounting pressure from global boycotts, particularly in regions where solidarity with Palestine is a deeply held value, amplifying calls for accountability.
Starbucks’ refusal to publicly condemn Israel’s military operations, which have resulted in significant loss of life and displacement in Gaza, has fueled widespread criticism.
Pro-Palestinian activists have targeted the company for its perceived alignment with Israel, especially after lawsuits against Starbucks Workers United for using the company’s logo in posts supporting Palestine.
Starbucks Workers United, representing over 650 unionized U.S. stores, condemned the layoffs as evidence of a company moving “backwards.”
The union, which has sought a first contract since Niccol became CEO last September, accused Starbucks of neglecting the workers who sustain its operations.
“Fixing Starbucks requires centering the people who serve customers, not slashing jobs to prop up a failing business model that prioritizes profits over ethics,” the union said.
Negotiations with the union have stalled, leading to the largest strike in Starbucks’ history last December, with workers signaling further action if demands are unmet.
The company also faces intensifying pressure from the global Boycott, Divestment, Sanctions (BDS) movement, which urges consumers to shun businesses linked to Israel’s policies.
Public sentiment strongly supports Palestinian rights, social media campaigns have echoed these calls, with hashtags like #BoycottStarbucks gaining traction alongside images of Palestinian resilience.
“Starbucks is cutting jobs and closing stores while funneling support to a regime committing atrocities in Gaza,” said one activist on X.
Niccol’s letter avoided addressing the union’s demands or the company’s stance on Israel, noting only that the decisions “were not made lightly.”
Starbucks shares dipped 1% after the announcement, signaling investor concerns as the company grapples with financial strain and reputational challenges.
As Starbucks navigates its restructuring, pro-Palestinian advocates and unionized workers are demanding greater accountability.
They urge the company to address its role in the Gaza controversy and prioritize fair treatment for its workforce.
