Starbucks layoffs: Tech unit hit amid major turnaround effort
ETtech April 23, 2026 07:19 PM
Synopsis

Starbucks is cutting jobs in its technology division. This move is part of a larger restructuring plan. Some Seattle tech roles will move to Nashville. The company is making these changes under new leadership to improve operations and sales. Further workforce adjustments are anticipated.

Starbucks has announced job cuts within its technology organisation, according to a message sent to employees on Tuesday. The move follows days of internal speculation and is part of a broader restructuring effort, as reported by The Seattle Times.

The company has not disclosed the number of jobs affected or confirmed whether the layoffs are concentrated in Seattle. Impacted employees were informed on Tuesday as well.

“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 message, per the report.


Alongside the cuts, in a separate announcement, Starbucks also informed that some Seattle-based technology roles will be relocated to its upcoming office in Nashville, Tennessee, which is expected to eventually accommodate up to 2,000 employees.

Turnaround plan under new leadership

The restructuring forms part of a wider overhaul of Starbucks’ technology division under chief executive Brian Niccol, who joined the company in 2024 amid slowing sales, margin pressures, and operational challenges.

To address these issues, the company has been investing in store improvements and expanding into new markets, as well as tightening costs across operations.

In December 2025, Starbucks appointed Anand Varadarajan as chief technology officer after nearly two decades at Amazon, where he led its global grocery business. His hiring signalled a stronger focus on technology-driven efficiency and growth.

Ongoing workforce reductions

The latest job cuts add to a series of workforce reductions over the past year. Starbucks previously shut several hundred stores across the US and Canada, including more than 30 in Washington state.

It also reduced its workforce by nearly 1,000 across retail and non-retail roles in Seattle and Kent, along with about 1,100 corporate positions.

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