(March 6): The Starbucks operator in the Middle East and North Africa has cut thousands of jobs as it faces tough economic conditions and calls to boycott the US coffee chain over its response to the Israel-Hamas war.

Alshaya Group, which has been the licensed partner for the chain in the region for over a decade with 1,300 locations, eliminated 2,000 jobs, the company confirmed to Bloomberg News. That reduces its regional Starbucks workforce by around 20%. A spokesperson cited “challenging trading conditions” as the reason for the layoffs.

Earlier this year, the company said it saw significant impact on traffic and sales in the Middle East, and a hit to US business due to the Israel-Hamas war. The coffee chain has faced backlash from customers accusing it of not doing enough to pressure Israel to end its offensive in Gaza.

The Seattle based coffee chain has issued public statements to emphasise its political neutrality. Yet the boycott movement has has spread rapidly since the war began, with calls to avoid Starbucks still spreading.

Reuters first reported the cuts.