Starbucks cuts tech jobs as new CTO reshapes organization

Starbucks is cutting jobs in its technology organization, restructuring the team under a new chief technology officer who joined the coffee giant from Amazon four months ago.

Several affected employees posted about the cuts on LinkedIn on Tuesday afternoon, including people in program and product management and other technology-related roles. Starbucks declined to comment, and the number of people impacted is unclear as of now. 

The Seattle Times reported on the cuts earlier today, citing an internal message in which the company told employees it was “making structural changes to move faster, sharpen focus, and ensure we are set up to deliver on our most important priorities.”  

Anand Varadarajan joined Starbucks as chief technology officer in January after 19 years at Amazon, where he most recently ran tech and supply chain for its global grocery business. 

The restructuring comes as Starbucks pushes ahead with a broader turnaround under CEO Brian Niccol, who joined in 2024. It includes a series of technology initiatives from an AI-powered drink-ordering assistant to an algorithm that manages mobile order timing. 

The cuts appear to be unrelated to the company’s Nashville expansion. Following up on a prior announcement, Starbucks said Tuesday that it will invest $100 million in the new corporate office in Tennessee that will eventually employ up to 2,000 people.

Update: Downtown Seattle Association President and CEO Jon Scholes said Seattle is losing ground to other cities competing for employers and jobs. He called Starbucks “an important employer in Seattle” that “has had an indelible impact on our city’s identity and economy.”

“Over the last three years, Seattle has shed thousands of jobs while other cities in the region and across the country experience job growth,” Scholes said in a statement. “City leaders must accept this reality and commit to a more competitive and welcoming approach to further economic opportunity and prosperity.”