Starbucks Strike to Expand to over 300 US Stores on Christmas Eve, Union Says

Starbucks employees, union members and supporters strike outside of a Starbucks store which is closed down due to the strike on December 23, 2024 in New York City. (Getty Images/AFP)
Starbucks employees, union members and supporters strike outside of a Starbucks store which is closed down due to the strike on December 23, 2024 in New York City. (Getty Images/AFP)
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Starbucks Strike to Expand to over 300 US Stores on Christmas Eve, Union Says

Starbucks employees, union members and supporters strike outside of a Starbucks store which is closed down due to the strike on December 23, 2024 in New York City. (Getty Images/AFP)
Starbucks employees, union members and supporters strike outside of a Starbucks store which is closed down due to the strike on December 23, 2024 in New York City. (Getty Images/AFP)

A strike at Starbucks' US stores will expand to over 300 stores on Tuesday, with more than 5,000 workers expected to walk off the job, before the five-day work stoppage ends later on Christmas Eve, the workers' union said.

Starbucks Workers United, representing employees at 525 stores nationwide, said more than 60 US stores across 12 major cities, including New York, Los Angeles, Boston and Seattle, were shut on Monday.

Talks between Starbucks and the union had hit an impasse with unresolved issues over wages, staffing and schedules, leading to the strike.

The Christmas Eve strike on Tuesday was projected to be the largest ever at the coffee chain, the union added. "These strikes are an initial show of strength, and we're just getting started," an Oregon barista said in a union statement.

When asked for a response, a Starbucks spokesperson referred to a company statement it released on Monday.

It said that the vast majority of Starbucks stores will continue to operate and serve customers, adding that it expects a "very limited impact" to overall operations. Starbucks has over 10,000 company-operated stores across the US.

"We are ready to continue negotiations when the union comes back to the bargaining table", the company said.

The Seattle-headquartered firm had previously claimed that the union delegates prematurely ended the bargaining session.

Earlier this month, the workers' group rejected an offer of no immediate wage hike and a guarantee of a 1.5% pay increase in future years.

The union also said that Starbucks has yet to present its workers with "a serious economic proposal."



Saudi Arabia’s Kingdom Holding Buys $400 Million Stake in xAI

xAI logo is seen near computer motherboard in this illustration taken January 8, 2024. REUTERS/Dado Ruvic/Illustration
xAI logo is seen near computer motherboard in this illustration taken January 8, 2024. REUTERS/Dado Ruvic/Illustration
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Saudi Arabia’s Kingdom Holding Buys $400 Million Stake in xAI

xAI logo is seen near computer motherboard in this illustration taken January 8, 2024. REUTERS/Dado Ruvic/Illustration
xAI logo is seen near computer motherboard in this illustration taken January 8, 2024. REUTERS/Dado Ruvic/Illustration

Kingdom Holding Company (KHC) said on Wednesday it has acquired a key stake in xAI Corporation, an artificial intelligence company founded by US billionaire Elon Musk for 1.5 billion Saudi Riyals ($400 million), becoming the second largest investor in X and xAI.

The acquisition of the new stake is part of xAI’s Series C funding round, said KHC in its filing to Saudi bourse Tadawul.

This transaction follows KHC's previous investment at the same value in xAI during its Series B funding round.

It further solidifies KHC's strategic partnership with Elon Musk, and follows its strategic stake in X (Twitter), held since 2015, KHC stated.

A post on X said Prince Alwaleed bin Talal became the second largest shareholders in Musk’s two companies, X & xAI.

In November 2022, the Saudi prince moved almost 35 million Twitter shares through the Kingdom Holding Company, worth about $1.9 billion at the $54.20 per share sale price. That made him the “second-largest investor” in the new parent company.
Funding Rounds

The funding rounds consist of several fundraising events in which startups or existing companies raise funds from investors to continue building their infrastructure and accelerate research and development.

The rounds start with a “seed round” of funding where a startup typically raises money from the owners to cover initial operating expenses and then expand to Series A, B, and C funding rounds as the company develops to raise additional capital.

In terms of risks, Series B funding is generally less risky than Series A funding, while Series C is less risky than Series B and is typically used by companies that are growing rapidly and need additional capital to fund their expansion.

Musk's xAI Series C funding round included the Qatar Investment Authority (QIA) and the Oman Investment Authority (OIA).

Participants included Morgan Stanley and BlackRock, which were described as two of the major investors in the fundraising round.

KHC, in which Public Investment Fund (PIF) owns a 17% stake, said xAI has a $45 billion valuation with the latest funding round, indicating a significant increase from its $25 billion valuation during the Series B funding round, the filing showed.

Following the announcement of the acquisition, the shares of KHC, listed on the Saudi Stock Exchange, rose by 0.44% to 9.16 riyals.

xAI’s strategy focuses on developing leading AI models and working closely with other technology companies associated with its founder, including Tesla, SpaceX, and X, whose application has over 500 million users.

KHC said this transaction further solidifies KHC's strategic partnership with Elon Musk, and follows its strategic stake in X (Twitter), held since 2015.

It forms part of KHC’s business model of securing early stakes in emerging technologies and its ambition to lead and innovate within the AI industry, it added.