Americana Restaurants International Plc, the Middle East operator of KFC and Pizza Hut, has undergone internal restructuring and cut almost 100 jobs in response to a consumer boycott of its brands following the Israel-Hamas war. The company, listed in Abu Dhabi and Riyadh, made the decision after conducting structure reviews to align resources with strategic goals and growth aspirations.

While Americana employs tens of thousands of staff across the Middle East, most of the layoffs occurred at its headquarters in Dubai. The consumer boycott, triggered by the conflict and the regional geopolitical tensions, has adversely affected sales of big foreign brands in the Middle East and other Muslim nations like Pakistan. This has led to a challenging business environment for Americana.

JPMorgan Chase & Co. recently downgraded Americana’s rating to neutral from overweight, citing more challenging near-term dynamics, including pressure from weak sales activity, delayed store opening plans, and weaker EBITDA margins. The impact of the boycott and the regional geopolitical tensions on the company’s performance are expected to be revealed in its upcoming full-year results.

According to JPMorgan’s report, Americana’s top brands KFC, Pizza Hut, and Hardee’s have been affected in recent months, with Egypt being the hardest hit among the region’s most populous nations. The bank also revised its growth forecast and estimates for new store openings to account for the current backdrop and longer-term concerns around the shift toward healthy eating.

Shares in Americana, majority-owned by an investment vehicle owned by Saudi Arabia’s sovereign wealth fund and real estate tycoon Mohamed Alabbar, have declined by nearly a fifth since the conflict began in October.