Because of the boycott .. Starbucks closes branches and exposes employees

Starbucks announced the closure of hundreds of its branches, as part of a restructuring plan aimed at reviving its troubled business due to the boycott campaign.

Petarbx CEO, Brian Nickel, revealed that the company will close hundreds of branches this month. This decision came after a comprehensive review of the company’s sites that did not achieve the expected financial performance or provide the appropriate environment for customers and employees. Starbucks is scheduled to end with 18,300 branches by the end of September. In addition, the company announced a second round of employee being demobilized at its headquarters, where about 900 additional employees will be lay off, bringing the total hairdos since the beginning of the year to about 1900 employees. It is expected that restructuring efforts will cost one billion dollars, which reflects the financial pressures facing the company. Despite these steps, the SBux shares have not witnessed any remarkable change in trading before the market, indicating the continuation of the uncertainty about the future of the company. These challenges come at a time when Starbucks is exposed to a wide boycott in the world because of its position on the Israeli war on Gaza. Calls for boycotting the company have spread through social media, with a responsibility for its alleged support to Israel through the financial donations of organizations related to the Israeli army. These accusations led to a significant decline in sales, which added another burden on the company that tries to recover from the global economic crisis and high operating costs. In an attempt to restore customer confidence, Starbucks announced plans to redesign more than 1,000 branches, with a focus on focusing on Provide a more comfortable atmosphere through comfortable chairs, more energy outlets, and warm colors. The company also made adjustments to its list, including the reduction of the elements by 30% and the launch of new products such as Croissant and protein additions. Despite these efforts, “Starbucks” faces major challenges as a result of the decline in profits and the high costs of operations, in addition to the popular boycott that cast a shadow on its brand. It seems that the company needs more comprehensive strategies to address these issues and rebuild its image in global markets. (Russia today)