(CTN News) – Starbucks has experienced a significant decrease in value since mid-November, with a decline of approximately 9 percent, resulting in a market capitalization loss of $11 billion.
In an official communication addressed to the company’s employees, CEO Laxman Narasimhan expressed his strong disapproval of the recent acts of vandalism targeting Starbucks stores and the escalating protests in the United States and internationally.
This message’s purpose was to clarify the company’s stance amidst the ongoing conflict in Gaza.
Due to a lawsuit filed against the union responsible for organizing Starbucks workers over a pro-Palestinian social media post shared by a coalition account, the renowned American coffee shop chain has faced severe boycotts.
Starbucks aimed to prevent the union, known as Starbucks Workers United and representing approximately 9,000 employees, from utilizing its name and logo.
The company asserted that it had no official position on the war and expressed concerns that the union’s post could potentially divide its customer base.
However, in light of recent events, including the spray-painting of a New York store with pro-Palestinian graffiti and instances of employees being targeted for their perceived anti-Israel sentiments, the Starbucks CEO is now adopting a more cautious approach.
Narasimhan expressed gratitude for many things but also expressed concern about the current state of the world. He highlighted the conflicts in various parts of the world, which have resulted in violence against innocent people, hate, and the spread of weaponized speech and lies. Narasimhan made it clear that he condemns all of these negative aspects.
He emphasized that their stance is firmly rooted in humanity, indicating their commitment to promoting compassion and understanding.
According to AP News, Starbucks, based in Seattle, has not disclosed the impact on its sales. The company’s next quarterly sales report is scheduled to be released in February.
However, there are signs that Starbucks is experiencing a decline in sales.
AP News reported that Starbucks has suffered an $11 billion loss in value due to staff strikes and increasing boycotts. Since November 16, the company’s shares have dropped by 8.96%, marking a 12-day consecutive decline, the longest in its history.
The report further stated that the decline in shares, which coincided with the Red Cup Day promotion, has resulted in a significant $11 billion loss. This drastic decrease, combined with reports of sluggish sales and a lukewarm response to their holiday lineup, has raised concerns about the company’s prospects.