Starbucks Faces Crisis with $11 Billion Loss and a ‘Powerful Blow’ in Egypt Amidst Controversial Tweet

In a tumultuous turn of events, Starbucks, the world’s leading coffee chain, has incurred a staggering loss of $11 billion in market value, marking a 9.4% decline and triggering alarm bells within the corridors of the global coffee giant.

Crisis at Starbucks-Source: X

The crisis stemmed from an unexpected tweet by the Starbucks Workers Union, representing a faction of coffee industry workers, expressing solidarity with Palestinians at the onset of Israeli attacks on Gaza. This led the company to file a lawsuit against its employees who voiced support for Palestine, sparking widespread controversy.

🇪🇬 Boycotts and Worker Strikes: Starbucks Loses $11 Billion Amid Gaza Conflict #mostliked #egypt https://t.co/IX1SUArUCO

— Imminent Global News (@imminent_news) December 9, 2023

According to reports from “Economic Times,” since November 16, Starbucks stocks plummeted by 8.96%, resulting in a colossal loss of $11 billion. This catastrophic drop, coupled with reports of slowing sales and a lukewarm reception to holiday promotions, cast shadows over the company’s prospects.

One economic analyst for Economic Times commented, “Amidst the escalating boycott linked to tensions between Israel and Gaza, growing discontent poses significant challenges for the company’s future.”

Here’s why #Starbucks faces over $11 billion #loss in valuehttps://t.co/e3RagIlQZ8

— Economic Times (@EconomicTimes) December 7, 2023

This market decline sets a new record as Starbucks experiences a 12-session stock downturn, the longest since its inception in 1992. The company is currently trading at around $95.80 per share, starkly contrasting with its annual peak of $115.

Navigating these turbulent waters is now of paramount importance for Starbucks, as it strives to maintain its brand image amid globally divisive issues.

Impact in Egypt

Reports indicate that the repercussions of the boycott have transcended borders, with Starbucks in Egypt downsizing its workforce due to financial pressures resulting from the boycott’s effects.

This move serves as tangible evidence of the impact of widespread global protests against brands associated with Israel. As Starbucks navigates this critical juncture, the company faces a challenging battle to regain market trust and reclaim its former standing in the aftermath of these tumultuous times.