Is Starbucks being affected by the boycott?
Why the Boycott Matters When Starbucks sued its own union for a pro-Palestine post, millions of people worldwide chose to stop buying its lattes. In Malaysia, Starbucks’ operator reported a 36% revenue collapse and a $69 million loss, directly blaming the boycott. Malaysia have already shut down. More competition, inflation and consumer shifts have hurt Starbucks’ bottom line. Starbucks announced Thursday that it will close 1% of its stores in North America this month. The closures – and layoffs of 900 corporate employees – are part of a $1 billion restructuring plan.This led to the surge of boycotting, causing Starbucks to lose $11 billion within a few weeks after Oct. Starbucks’ stock declined for 12 consecutive stock market sessions, the longest-ever recorded streak since the company went public in 1992.We want to be crystal clear – Starbucks has been and will continue to be at the forefront of supporting the LGBTQIA2+ community, and we will not waver in that commitment.Starbucks recently announced that the company would be closing 1% of its North American stores by the end of 2025, citing financial performance as one of the reasons for the closures. In addition, the company shared that 900 non-retail positions would be eliminated.From union-busting to racial discrimination and cultural exploitation, many are calling out the contradictions between starbucks’ image and its actions. So… why exactly are people boycotting starbucks in 2025?
Why are people boycotting Starbucks?
After issuing Palestinian support and solidarity and condemning Israel, a global boycott began, in addition to a pause in hosting Pride decorations in stores. For several months, Starbucks has been subjected to lawsuits for policy changes against workers and customers of the Black and LGBTQ+ community. Since 2023, activists have pushed a Starbucks boycott over its support for Israel, costing the company about $11 billion in value and six straight quarters of declining sales.Boycotts Work: Starbucks to close Stores & Cut 900 Jobs. On September 25, 2025, Starbucks announced a massive $1 billion restructuring plan that will cut 900 corporate jobs and close about 1% of its North American stores (roughly 200 locations).After issuing Palestinian support and solidarity and condemning Israel, a global boycott began, in addition to a pause in hosting Pride decorations in stores. For several months, Starbucks has been subjected to lawsuits for policy changes against workers and customers of the Black and LGBTQ+ community.Some people would agree that the boycott is working, citing that Starbucks has lost 11 billion dollars in market value amid boycotts. This doesn’t mean that sales are decreasing—it just means that sales aren’t growing as much as investors predicted.
Why are all the Starbucks closing down?
The coffee giant says the plan is to shut down stores that are financially underperforming or unable to provide the in-store experience customers have come to expect. Why have people turned their backs on Starbucks? The coffee chain was once wildly popular, but worse drinks, stealthy price hikes, and excessive wait times have left customers fed up. And it’s all about to hit a boiling point.Don’t let rejection create self-doubt. The founder of Starbucks was turned down by 217 of the 242 investors he initially spoke with.
What is Starbucks’ main issue?
Starbucks’ heavy focus on app-based sales has drawn criticism from loyal customers who value the brand’s traditional coffeehouse experience. Combined with its high prices, this shift has contributed to a decline in sales and growing dissatisfaction among consumers. New corporate layoffs are a second wave after Starbucks cut 1,100 jobs in February. CEO Brian Niccol has said the cost cuts were needed to redirect more money toward stores, where the company is adding more baristas, speeding up service and upgrading the ambiance.
Why is Starbucks stock falling?
Starbucks dropped for a second day on Monday, slashing 4. Starbucks Corp. NASDAQ:SBUX) is one of the worst performers on Monday. Starbucks dropped for a second day on Monday, slashing 4.In 2024, Starbucks dropped a few notches in Interbrand’s top 100 global brand ranking, from 48 in 2023 to 52. However, it plunged from no. Brand Finance report of the most valuable global brands, the greatest decline of any brand among its top 100.