Starbucks Faces Crisis With $11 Billion Loss, Major Setback in Egypt

Starbucks has incurred a massive loss in market value, totaling $11 billion, representing a 9.4 percent decrease.

This has sounded alarm bells within the corridors of the world's leading coffee chain company.

The crisis that Starbucks faces today stems from an unexpected tweet by the Starbucks Workers' Union, representing a faction of coffee industry workers.

In the tweet, they expressed solidarity with Palestinians at the beginning of Israeli attacks on Gaza.

The company filed a lawsuit against its employees who showed support for Palestine, sparking controversy.

This initiative triggered a series of reactions, leading to a widespread boycott that severely affected the financial standing of the giant company.

According to "Economic Times," since November 16, Starbucks shares have plummeted by 8.96 percent, resulting in a massive loss of $11 billion.

This catastrophic decline, coupled with reports of slowing sales and a lukewarm reception of holiday promotions, has cast a shadow over the company's prospects.

An economic analyst for Economic Times commented, "Amid the escalating boycott related to tensions between Israel and Gaza, growing discontent poses significant challenges to the company's future."

This market downturn sets a new record, as Starbucks has witnessed a decline in stocks for 12 consecutive sessions, the longest since its establishment in 1992.

Currently, the company's shares are trading at around $95.80, a stark contrast to its annual peak of $115.

According to the specialized economic website, Starbucks' journey "through these turbulent waters" has become of paramount importance as the company struggles to maintain its brand image amid globally divisive issues.

The repercussions of the boycott have extended beyond borders, with reports indicating that Starbucks in Egypt has downsized its workforce due to financial pressures resulting from the boycott.