Starbucks layoffs hit tech teams amid restructuring push

Starbucks has begun laying off employees in its technology teams as part of a broader restructuring of its tech organisation, reported by The Times of India, citing The Seattle Times.

According to an internal communication sent to employees and seen by The Seattle Times, the company informed affected staff earlier this week about the layoffs. While the exact number of job cuts and their location remain unclear, Starbucks said the move is aimed at reorganising operations and deploying resources more effectively.

“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 memo.


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The report noted that speculation around potential layoffs had been circulating for several days before the announcement. Starbucks also clarified that the cuts are not linked to its plan to shift some technology roles from Seattle to a new office in Nashville, Tennessee, which is expected to eventually house up to 2,000 jobs.

The latest layoffs are part of a wider turnaround strategy under CEO Brian Niccol, who joined in 2024 to address slowing sales, profit pressures, and operational challenges. As part of this effort, the company has been investing in store upgrades, expanding into new markets, and implementing cost-cutting measures across its business.

In December 2025, Starbucks appointed Anand Varadarajan as chief technology officer after nearly two decades at Amazon, where he led its global grocery business. The move was seen as a push towards technology-led growth and improved efficiency.

The report added that the layoffs follow a series of workforce reductions over the past year, including the closure of several hundred stores across the US and Canada, more than 30 of them in Washington state, and job cuts affecting nearly 1,000 retail and non-retail workers in Seattle and Kent, along with around 1,100 corporate employees.

Further layoffs are expected in the coming weeks as Starbucks continues to adjust its operations and cost structure, the report said.

(With inputs from TOI)