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Starbucks opens India tech hub while cutting jobs and trimming global costs

• By Samriddhi Srivastava
Starbucks opens India tech hub while cutting jobs and trimming global costs

Starbucks is set to establish its first major standalone corporate office in India, marking a significant expansion of the company’s technology operations in one of its fastest-growing talent markets.

According to reports by Bloomberg, the office is expected to begin operations during Starbucks’ fiscal year 2027, which starts in October 2026.

The new facility will primarily focus on:

Recruitment is expected to begin after Starbucks finalises the office location later this year.

The move comes as the US coffee chain accelerates a wider global restructuring aimed at reducing costs, simplifying operations and lowering dependence on external technology vendors.

Company seeks greater control over tech operations

In an internal message reviewed by Bloomberg, Anand Varadarajan, Chief Technology Officer at Starbucks, reportedly told employees the company was working towards “reducing reliance on external service providers”.

Varadarajan said Starbucks planned to create a multi-site technology structure to improve collaboration and give the company more direct oversight of its technology operations.

The strategy reflects a broader trend among multinational companies that are increasingly shifting technology work in-house rather than relying heavily on outsourced vendor networks.

According to the report, Starbucks believes India offers strong capabilities in:

  • Software engineering
  • Cloud infrastructure
  • Enterprise platforms
  • Digital operations
  • Technology support services

The company already works with several technology partners in India, making the country a natural expansion base for internal engineering teams.

Expansion comes amid aggressive cost-cutting

The India office announcement arrives during a major restructuring exercise under Starbucks Chief Executive Officer Brian Niccol.

The company is pursuing a broader global cost reduction strategy aimed at saving around $2 billion, according to reports.

As part of the restructuring, Starbucks has:

  • Reduced corporate headcount
  • Restructured business units
  • Shifted some technology operations
  • Expanded internal engineering capabilities

Bloomberg earlier reported that Starbucks planned to relocate around 270 technology roles, representing nearly 20 per cent of its technology workforce, to a new office in Nashville in the United States.

The company has also cut technology and corporate roles during the restructuring process.

More than 2,000 jobs cut since last year

Reports indicate Starbucks has eliminated more than 2,000 jobs globally since February last year.

This week alone, the company reportedly cut another 300 corporate positions as part of the continuing overhaul.

The restructuring effort is focused on streamlining operations while improving efficiency across business functions.

Varadarajan has previously argued that heavy dependence on contractors and external vendors increases operational costs because service providers apply additional mark-ups.

By building more internal teams, Starbucks aims to reduce long-term technology spending while strengthening operational control.

India emerges as strategic technology base

India’s growing importance as a global technology and engineering hub continues to attract multinational corporations seeking skilled digital talent at scale.

While Starbucks has not officially confirmed the city for the upcoming office, reports suggest the location decision is expected later this year.

Currently, Starbucks operates in India through Tata Starbucks, its joint venture with Tata Consumer Products, which manages Starbucks cafés across multiple Indian cities.

However, the upcoming technology centre will represent Starbucks’ first independent corporate office in the country.

The development also signals the company’s intention to deepen its direct operational footprint in India beyond retail expansion.

As global firms increasingly restructure around digital operations, India is likely to remain central to corporate technology hiring strategies, particularly in software engineering, AI infrastructure and enterprise systems management.