UAE-based employees of Starbucks are living in fear of losing their livelihood as Gulf retail giant Alshaya Group — which operates the coffee chain in the Middle East — said they are cutting jobs. Some employees in the UAE have already been asked to leave, according to their colleagues.
A spokesperson for Alshaya Group did not confirm or deny whether the layoffs would impact Starbucks employees in the UAE. In a statement shared with Khaleej Times, the spokesperson said the group has taken the “sad and very difficult decision to reduce the number of colleagues in our Starbucks Mena stores” as a result of the “continually challenging trading conditions over the last six months”.
News agency Reuters said the business was taking a hit from consumer boycotts linked to the Israel-Hamas war raging on in Gaza. Starbucks has maintained that it remains a non-political organisation and categorically denied having provided “financial support to the Israeli government and/or the Israeli Army in any way”.
Stay up to date with the latest news. Follow KT on WhatsApp Channels.
Alshaya has been the licensed partner for Starbucks in Mena for over 25 years. In its statement, the group said it has over 1,300 coffee shops and “11,000 colleagues — with half being nationals from our local communities — serving our customers, supporting local suppliers, and contributing to local economies”.
Empty cafes
When Khaleej Times visited two Starbucks outlets in Dubai on Wednesday evening, they wore an empty look.
Deliveries and takeaway orders are “intermittent”, noted a barista of more than five years.
Employees of the coffee chain — Amina, Nova, Bigen and Mark whose names have been changed as per their request — said some of their colleagues have already received the pink slip.
“Our branch manager of more than 20 years was laid off a couple of days ago – and we saw it coming as sales were really down for months,” Mark, 45, a father of two, told Khaleej Times.
The popular US coffee chain is among Western brands that have been hit by the boycott campaign. At the entrance and tables of every Starbucks café, one will find a note with a QR code explaining the company’s stance on the consumer boycott.
“But the consumer boycott has gravely affected sales,” said Amina, 36, a cashier.
Uncertain future
“To be honest, we’ve become victims of this war,” she added. She is now unsure of her future at the company as downsizing is “inevitable”.
Nova, who has been working as a barista at Starbucks for about six months, is fearful of losing her job. “To be honest, Alshaya is a dream company for me. I waited for more than a year before being hired. I had to go through rigorous training and selection process. But now, I don’t know what will happen to me or to my colleagues.”
Bigen said branches that were underperforming would get the boot. “Some branches are doing okay but many are not,” he added.
With his voice becoming a little agitated, he continued: “I hope customers will not blame us or the company — we have nothing to do with the war but we’re suffering, too.”
‘What will happen to our families?’
His colleague, Mark, added he has two sons – 13 and 7 years old – who are both in school. His wife is diabetic and requires maintenance medicine. “What will happen now to my family in the Philippines if I lose my job?”
“Imagine, 2,000 employees terminated (in the Mena region). Let’s say, each of them has two to three dependents, that would mean 6,000 to 8,000 will become victims of this ongoing war,” he lamented.
“I hope the company can still hold it for a while before implementing a mass layoff. But we also pray that this war would end soon, so things can go back to normal. We miss our customers,” Bigen added.
Alshaya remains hopeful of growing its business in the Mena region. In its statement to Khaleej Times, the group said: “We are committed to the region, and look forward to continuing to grow our business for many more years serving our customers and enhancing the livelihoods of our colleagues who remain with us and their families.”