Starbucks has Decided to Exit Russia Following Invasion of Ukraine
May 23, 2022 By MarketDepth
Starbucks has decided to make its exit from Russia following the country’s invasion of Ukraine. Similarly, other big name companies such as McDonalds and Exxon Mobil have also parted ways with the country. The coffee chain made the announcement Monday, explaining that it will no longer have a brand presence in the country.
130 Locations in Russia
The company currently has 130 locations in Russia, amounting to less than 1% of its annual revenue. Furthermore, the locations are all licensed and Starbucks does not directly operate them.
“We condemn the unprovoked, unjust and horrific attacks on Ukraine by Russia, and our hearts go out to all those affected. The invasion and humanitarian impact of this war are devastating and create a ripple effect that is felt throughout the world.”Kevin Johnson wrote colleagues in March, before he retired as chief executive officer
Nevertheless, Starbucks revealed it will be giving 2,000 Russian employees six months pay and will help them move into other lines of work, outside of the coffee chain.
Companies have Received Pressure
Western companies have received endless pressure from both consumers and investors to cut ties with Russia as a means of opposing the War. The company initially suspended all operations in the country on March 8.