Starbucks Announces Job Cuts in Technology Division Amid Restructuring

Starbucks has reportedly announced job cuts in its technology teams. According to an internal communication sent to employees, the company noted that it is laying off staff as part of a restructuring of its technology organisation. This week, the company informed the laid-off employees. There had been rumours about the layoffs for a few days before that.

Starbucks hasn't confirmed how many jobs will be lost or confirmed whether the cuts will be focused in Seattle, but the company did say the move is part of a larger effort to reorganise operations and ensure resources are used where they are most needed. “We are making structural changes to move faster, sharpen focus, and ensure we are set up to deliver on our most important priorities,” the company said in the internal memo. It's important to note that the layoffs are not related to a plan to move some tech jobs from Seattle to a new office in Nashville, Tennessee. This office is expected to hold up to 2,000 jobs over time.

Starbucks is overhauling its technology division as part of its turnaround plan under CEO Brian Niccol. He joined the company in 2024 to help with slowing sales, profit pressures, and operational problems in stores. As part of this effort, Starbucks has been investing in store upgrades and expanding into new markets. At the same time, the company has been implementing cost-cutting measures across different parts of the business.

In December 2025, Starbucks appointed Anand Varadarajan as chief technology officer (CTO) after nearly two decades at Amazon, where he led its global grocery business. His hiring was seen as part of a shift toward technology-led growth and operational efficiency. The recent layoffs add to a series of workforce reductions over the past year. Starbucks had earlier closed several hundred stores across the US and Canada, including more than 30 in Washington state. It also laid off nearly 1,000 retail and non-retail workers in Seattle and Kent, along with around 1,100 corporate employees. Further cuts are expected in the coming weeks, as the company continues to adjust its operations and cost structure.