Starbucks begins tech layoffs as new CTO reshapes organisation: Report

Starbucks has begun cutting jobs in its technology organisation as part of a restructuring led by its recently appointed chief technology officer. The number of roles affected has not been disclosed, and the company declined to comment on the layoffs.

The changes follow the appointment of Anand Varadarajan, who joined Starbucks in January after nearly two decades at Amazon, where he most recently oversaw technology and supply chain for its global grocery business.

GeekWire reported that employees in programme management, product management and other technology-related roles were among those affected, with several individuals sharing updates about job losses on LinkedIn.

According to The Seattle Times, which first reported on the internal communication, the company told staff it was “making structural changes to move faster, sharpen focus, and ensure we are set up to deliver on our most important priorities.”

Part of broader turnaround strategy

The restructuring comes as Starbucks pushes ahead with a wider transformation under chief executive Brian Niccol, who took over in 2024.

The company has been investing in a range of technology-led initiatives, including an AI-powered drink ordering assistant and systems designed to optimise mobile order timing, as it seeks to improve operational efficiency and customer experience.

Layoffs not linked to expansion plans

The job cuts appear to be separate from Starbucks’ ongoing expansion efforts. GeekWire reported that the company reiterated plans to invest $100 million in a new corporate office in Tennessee, which is expected to employ up to 2,000 people over time.

The parallel moves underline a shift in how Starbucks is aligning its workforce with evolving strategic priorities, particularly in technology and digital operations.

The restructuring signals a sharper focus on execution within Starbucks’ technology teams as the company looks to streamline operations while advancing its digital agenda.

With leadership changes in place and technology initiatives underway, the coming quarters are likely to indicate how effectively Starbucks can balance cost discipline with innovation as part of its broader turnaround.