Starbucks (SBUX, Financial) workers in Los Angeles, Chicago, and Seattle have launched a five-day strike over issues related to wages, benefits, and staffing. The strike, organized by the Starbucks Workers United, has led to store closures and may expand unless an agreement is reached with the company. Workers are protesting what they describe as unfair labor practices and inadequate pay increases.
The union, representing employees from over 500 U.S. stores, claims that 98% of its members voted for the strike, emphasizing their commitment to resolving numerous unresolved labor disputes. Despite ongoing negotiations since February, the union accuses Starbucks of failing to offer a sincere economic proposal.
Starbucks' financial performance has been under pressure, with a reported 3.2% decline in Q4 2024 revenue and a 25.4% drop in net profit. The company attributes these challenges to increased competition and a weak macroeconomic environment impacting consumer spending. In response, Starbucks is investing in technology and simplifying its menu to improve service efficiency.
